To help increase access to quality insurance products and services in South Africa, IFC, the German Development Finance Institution (DEG), Hollard, and Yellowwoods have jointly announced an investment in South African insurtech company Naked to expand access to vehicle, home, and other insurance products.
The combined, IFC-led $17 million equity investment will support Naked’s strategy to expand its digital insurance offering, including to more first-time insurance buyers, and allow it to continue innovating to improve customer experience.
Hollard is South Africa’s largest privately-owned insurance group. Yellowwoods is a private investment group with interests in insurance ventures around the world.
South Africa has the largest and most mature insurance market in Africa. However, the most widely sold insurance products in the country are life and funeral insurance. Naked is increasing access to other insurance products, removing the need for costly distribution or sales channels, and passing a significant portion of the savings on to consumers through lower premiums.
We are excited to bring new investors on board in this funding round, as part of accelerating our growth plans. This investment validates our position as a pioneer of fully digital insurance in South Africa, and will enable us to grow our team, continue to invest in technology that puts customers in control, and to expand into new markets.Alex Thomson, co-founder, Naked
Improving access to insurance products is a key driver of financial inclusion as it has the potential to preserve assets, provide protection and risk-sharing, and reduce uncertainties. IFC’s investment in Naked will help increase the penetration of tech-driven insurance in the country and support the growth of the insurance sector to enhance economic growth.Adamou Labara, Country Manager for South Africa, IFC
Naked’s AI-driven online sales system allows the company to increase efficiency and convenience, offer lower prices, and serve more customers than more traditional insurance companies.