Naked, the artificial intelligence-driven car insurance provider, plans to grow its team, ramp up customer acquisitions and expand into new short-term insurance product categories. This follows a strong first six months of trading, with customer acquisition and retention rates that have exceeded the company’s expectations.
After Naked successfully met key milestones, founder investors, Yellowwoods and Hollard, have invested a further R30 million in Naked to enable the company to accelerate its growth and expand into new product lines. “We are proud to receive this vote in confidence from our investors and look forward to rolling out new products in response to customer demand,” says Naked co-founder, Alex Thomson.
Co-founded by actuaries Thomson, Sumarie Greybe, and Ernest North, Naked uses AI and automation to lower costs, put customers in control of their insurance experience, reduce fraud and enhance insurance as a social good. Customers can go online and get a final car insurance quote in less than 90 seconds without speaking to a contact centre agent.
Says Thomson: “We’re delighted by the response our insurance offering has received from the market. Our proposition of putting the customer in control, value for money and customer fairness is resonating with connected customers who are looking for a better car insurance experience.”
Naked’s offering is built on the latest technology, free from legacy costs. Innovations in how Naked reaches its customers mean that it has lower sales and servicing costs, enabling it to offer lower premiums to the customer.
Unlike traditional insurers, Naked takes a fixed portion of premiums to run the business, with the balance going into a pool to cover claims. Naked’s income doesn’t depend on whether claims are paid or not. This business model resolves the inherent conflict of interest in traditional insurance: that paying fewer claims results in higher profits for the insurer. Money left over in the claims pool goes to charities nominated by customers rather than towards company profits.
Instead of filling in forms and phoning call centres, customers can use the Naked mobile app – available for Apple iOS and Android – to manage their policies and claim after an incident. The app includes functionality such as Naked CoverPause™, an innovation which gives customers the ability to pause their accident cover if the car won’t be used for a day or more – instantly reducing the premium for that time. Naked uses AI to pay valid claims quickly and repudiate fraudulent or invalid claims to the benefit of its customers.
Says Nic Kohler, Head of Insurance at Yellowwoods: “We are proud investors in Naked because we embrace innovation that delivers an improved customer experience and enhances fairness for policyholders. Its strong performance over the past six months validates its business model, giving us confidence in its ability to drive further growth and innovation in the months to come.”
To learn more about Naked or to purchase car insurance in just three minutes visit www.naked.insure or download the Naked app from the Apple App Store or Google Play Store at no cost.