Naked Insurance secures R700 million in Series B funding

Naked Insurance, a South African insurtech company, has secured R700 million in a Series B funding round, bringing its total funding to R1.2 billion. The round was led by BlueOrchard, a global impact investment firm, with participation from existing investors including Hollard and the International Finance Corporation.

Read: Nintendo unveils Switch 2 with enhanced design and backward compatibility

Founded in 2018, Naked leverages AI and automation to offer a fully digital insurance experience. Customers can purchase car, home, and single-item insurance policies entirely online, without the need for human interaction. The company’s AI-powered platform streamlines the entire process, from policy purchase to claims processing, resulting in faster claim resolutions and reduced operational costs.

Naked will utilize this new funding to further invest in its technology platform, expand its product offerings and market reach, and enhance its advertising efforts to attract new customers. The company will also use the funds to meet regulatory capital requirements associated with its recent establishment of a cell captive, a structure that allows Naked to underwrite its own insurance policies while maintaining a strong financial position.

“We are trying to build insurance that people actually like,” said Alex Thomson, CEO of Naked. “Our differentiator lies in our ability to leverage technology to empower customers and provide them with greater control over their insurance experience.”

Naked’s innovative approach to insurance has resonated with customers, with the company experiencing significant growth in recent years. The company’s focus on customer experience and technological innovation positions it as a leader in the evolving insurtech landscape.