Naspers has announced a sizeable investment in local AI-driven insurtech company Naked Insurance, with the former leading the latest round of funding via its early-stage incubation vehicle Naspers Foundry.
The investment totals R120 million (~$8.3 million), marking the second insurtech investment that Naspers Foundry has made in as many weeks, along with it being the largest investment it has made in this sector to date.
For those unfamiliar with Naked, it was co-founded by actuaries Alex Thomson, Sumarie Greybe and Ernest North, with the platform utilising AI and automation in order to deliver a digital-first experience in order to find, activate and process car and household insurance for South Africans. We spoke to North in January of 2020 as the insutech company expanded its offerings from cars to the home.
This latest investment marks a significant point for the company’s future, as well as validation for how it has operated up until now.
“South Africans are in general underinsured when it comes to short-term personal insurance. While this is often due to price, consumer distrust and complexity have led to a misunderstanding of insurance. Naked’s offering is convenient, transparent and passes the cost savings from its innovative technology on to customers. It improves financial inclusion, in line with Naspers Foundry’s objective of investing in technology businesses that have a positive impact on society,” noted Phuthi Mahanyele-Dabengwa, South Africa CEO of Naspers, of the motivation behind the investment.
“Our ambition is to build insurance that people love by offering an experience that is affordable, convenient and transparent. We have come a long way since our launch in 2018 towards meeting these goals, including enabling customers to buy cover online in seconds, allowing them to claim and manage cover on our award-winning app, and passing on huge savings through sustainably lower premiums,” added Thomson.
It therefore looks like the Naked Insurance team and breadth of services are set to grow further.
“But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s calibre onboard to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets,” Thomson concluded.
Having already made some ways in the insurtech space, it will be interesting to see where this latest investment can take the company.
