Naked Insurance – What’s That?

Naked Insurance recently announced its first Naked Difference payment of R250 000 to causes doing great work, to help them make even more of a difference in South African communities.

The Naked Difference is not a traditional corporate social investment, but rather a new way of doing business that ensures Naked always act in customers’ best interests while also serving the greater good of society.

Traditional insurance operates on the basis where fewer claims means more profits. This means the insurer and the client both have their hands in the same pot, competing for the same money.

Naked has found a new way of doing business, where shareholders, customers and causes all win.

We have removed our hand from the claims pot completely. Instead we take a flat fee off the monthly premiums our clients pay to cover running costs and profits, and the rest of the money goes into a pot to pay out our clients’ claims. In years when the total value of claims is low, we pay whatever’s left in the claims pot to causes that our customers choose, rather than adding it to our bottom line.

“We started Naked because we are excited about the opportunity to create a new generation of insurance that aligns our interests with those of our customers. Our incentives are not linked to how much we pay out in claims each year, and that changes everything in insurance,” says Sumarie Greybe, co-founder of Naked.

The six causes that will benefit from the first Naked Difference payment are:

  • Christel House, a non-profit school in Cape Town that works to transform the lives of children living in poverty;
  • Cotlands, a non-profit early childhood development organisation;
  • Door of Hope, a charity that cares for abandoned babies;
  • Greenpop, a registered NPO who works to restore ecosystems and empower environmental stewards;
  • Living Legends, which implements sport and life skills programmes for impoverished youth; and
  • Oscars Arc, which runs the WOOF Project, a pop-up adoption initiative for shelter dogs.

For more, have a look at this video in which Naked client Simoné Pretorius tells her story about why she chose Door of Hope as her Naked Difference beneficiary: