Naked Insurance Seeks To Disrupt The Traditional Ways Of Doing Insurance. Naked Insurance’s revolutionary business model breaks the age-old cycle of distrust between insurers and their customers. Unlike other insurance, it charges a fixed percentage of the clients’ premiums to do everything. Its flat fee means that its income doesn’t depend on how much it pays out in claims, so it has no reason to make claiming difficult. When claims are low, premiums left over at the end of the year go to causes that the client cares about, supporting positive change in South African communities, rather than growing insurance company profits.
The company uses automated AI rather than call centres or brokers to run and manage their clients’ policy, which costs them less and translates into lower premiums for clients. It takes a low fixed fee, and Naked OnePrice ensures that the company never charges clients more than it should. Overall this means that the clients’ Naked price could be considerably lower than what they would pay elsewhere.
Naked is backed by Hollard Insurance, one of the largest short-term insurers in South Africa. They guarantee that all valid claims will be paid. Naked Insurance is also covered by reinsurance with international reinsurers like Munich Re and Scor Re, ensuring that even if disaster strikes – like a hailstorm or a fire – clients will be fully covered.
The Naked Difference is not a traditional corporate social investment, but rather a new way of doing business that ensures Naked always act in customers’ best interests while also serving the greater good of society. Traditional insurance operates on the basis where fewer claims mean more profits. This means the insurer and the client both have their hands in the same pot, competing for the same money.
“We started Naked because we are excited about the opportunity to create a new generation of insurance that aligns our interests with those of our customers. Our incentives are not linked to how much we pay out in claims each year, and that changes everything in insurance.” Sumarie Greybe, co-founder of Naked told SA Good News.
