DEG has announced a $4 million equity investment in the South African online insurance platform, Naked. This funding aims to bolster the company's growth through increased automation and AI investments, product and market expansion, and enhanced advertising efforts. DEG initially invested in Naked in 2023. The current financing round totals approximately $38 million, with contributions from global impact investor BlueOrchard and existing supporters IFC (a World Bank Group member), Yellowwoods, and Hollard.
Naked offers digital insurance solutions for private customers covering cars, buildings, and other valuables. Founded in 2018 by actuaries Alex Thomson, Sumarié Greybe, and Ernest North, the platform leverages AI technology to make insurance more accessible, affordable, and transparent. Customers can manage their policies entirely through an app—from obtaining quotes to filing claims.
The company distinguishes itself not only through its technology but also via its business model. Naked takes a fixed percentage of premiums while donating surplus funds from unclaimed amounts to customer-selected causes like local communities or charities. This approach eliminates conflicts of interest during claims processing.
Monika Beck from DEG's Management Board stated: “The improved access to insurance cover is an important engine for financial transformation and inclusion in South Africa. With Naked, we are investing in an up-and-coming company whose innovative business model is making it easier for many people to access affordable insurance cover."
Alex Thomson of Naked remarked: “This investment marks an exciting milestone as we continue to define a new category of insurance.” He added that support from shareholders and new investor BlueOrchard validates their business model's success.
DEG continues to promote digitalisation and transformation within partner countries by supporting tech-based business models like InsureTech companies such as Naked.