South Africa’s first digital insurance company Naked is set to receive an investment of $17 million from the International Finance Corporation, or IFC. This expansion of capital comes as the insurtech continues to expand its reach in the South African market.
Naked Insurance was established in 2019 and has since become one of the leading digital insurers in the country. The company offers a modern and simplified approach to car insurance, allowing customers to purchase policies online and manage their accounts through a mobile app.
The funding from IFC will be used to help Naked expand its customer base and gain a market share in the highly competitive insurtech industry. Naked plans to use the investment to launch several new products, including home insurance and health insurance. The company also plans to offer paperless insurance policies and rewards programs that encourage the use of technology in the claims process.
IFC’s investment in Naked is part of an ongoing effort to support South Africa’s growing insurtech sector. Over the past several years, the IFC has sought to invest in innovative technologies that can reduce costs and increase access to financial services. By partnering with Naked, the IFC hopes to help close the insurance disparity between the poorest households and their wealthier counterparts.
The investment in Naked will also provide IFC with the opportunity to learn more about the digital insurance industry and how it is transforming the insurance market in South Africa. This insight will help the IFC make better decisions on how to finance digital insurance companies in the future.
Naked Insurance’s expansion is driven by the company’s belief that buying insurance should be straightforward, transparent and affordable. With the support of the IFC, Naked can continue to increase access to insurance coverage for all South Africans.
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