What is Naked Insurance?
Founded in 2016, Naked Insurance is one of the newer insurance providers in South Africa. They think outside the box to offer a new way of insuring your belongings. A group of experienced individuals in the insurance industry whose aim was to change the way insurance works decided to “start over” by creating Naked Insurance. Naked is underwritten by the Hollard Insurance Company.
What Makes Naked Insurance Unique?
Seen as part of a new generation of insurers, Naked offers its clients new ways of getting a policy, making claims, and communicating with them. Naked also operates in a new way designed to increase trust between the insurance provider and its customers. There is no call centre, so insured individuals get everything they need by speaking to the Naked AI bot, Rose, on the website or mobile application.
The New Way of Operating
To achieve this increased level of trust, Naked makes a bold play meant to prove their honest approach. Instead of accruing all unpaid claims in a year to their own account, Naked keeps a set percentage of profits (20%). Pay-outs for any claims during the year come from a pool made up of the other 80%. If anything is left in this pool at the end of the year, Naked pays it out to charities. This is meant to exemplify the lack of benefit on their part should fewer claims be paid out.
The New Way of Getting a Policy
A second trait not seen in traditional insurance companies is the ability to finalise a complete, customised policy online. No call centre, no physical paperwork. Customers can start by getting a quote online. They can then purchase the policy digitally on their mobile application or online. Naked insurance plans are made to be customisable, allowing you to opt in or out for various options during the sign-up process.
The New Way of Processing Claims
Thanks to their new way of approaching insurance, Naked can offer one of the fastest claim approval times out there. When you send a claim using their mobile application, they could approve it within seconds! They achieve this by integrating artificial intelligence into their application. They do not benefit by stalling payouts because of their unique way of operating, so there is no reason to delay if your claim checks all the right boxes.
What Kind of Insurance Does Naked Offer?
With Naked, you can buy a third-party only vehicle cover policy, a comprehensive car insurance plan, a home contents insurance plan, a home buildings insurance plan, or even insurance for individual items.
Naked Car Insurance
Naked offers two options for car insurance, a third-party only option or a more comprehensive and customisable car insurance option. Unlike other insurance policies, you can choose your preference as you follow a step-by-step process on their app. First, you can choose an excess that suits your pocket. The excess, as with other insurance companies, will influence your monthly premium. There is no joining fee for car insurance policies. Your car is insured for its retail value with no waiting periods. Drivers other than the regular driver are also covered, although they will still need a valid driver’s license and the permission of the owner of the car. Naked Car Insurance policies also include 24/7 roadside assistance. If you choose not to get the customisable car insurance policy, you can choose to only get cover for third-party claims. Naked will then pay-out up to R5 million for claims against you for damages and loss in an accident involving your car.
What is the Naked Car Insurance Cover Pause?
One of the most exciting things Naked Car Insurance offers their customers is the option to pause their accident cover when their car isn’t on the road for a few days or weeks. Many members of the public insured by Naked took advantage of this offer during the 2020 COVID-19 lockdown.
When your car insurance is paused, you pay a much lower amount for your car insurance. Your car should still be covered for fire, theft, flood, and other risks a still-standing vehicle could be exposed to. Once the insured’s car is in use again, they can just switch their cover back on using the Naked App. If this step is skipped, accidents won’t be covered, putting the car and its driver at risk.
Naked Home Contents Insurance
You can customise and finalise a policy for home contents insurance with Naked in the same way. With the Naked Home Contents plan, you get full cover for your things at home or everywhere else in South Africa and the World. Cover outside our borders is available for up to six months at a time. The plan includes up to R5 million cover for liability claims, 24/7 roadside assistance, replacing locks and keys, and a security guard after an insured event.
Naked Building Insurance
The Naked Building Insurance policy includes cover for all buildings and fixtures on the insured property, including jungle gyms, pool, and even gate motors. Risks covered include theft, fire, and other natural disasters. With this policy, you can choose your excess. Geysers and tanks or pipes are covered, along with benefits like 24/7 roadside assistance, replacing locks and keys, and emergency security after an event.
Naked Single Items Insurance
Another special offer from Naked, getting cover for individual items is innovative. Whether the item is a business or personal item, it can be covered with this policy. You can choose your excess, and you can get cover internationally for up to six months. Risks covered include theft, accidental damage, and loss.
DISCLAIMER: The information provided in this article is meant for informational purposes only and should not be construed as legal, medical, or financial advice. Facts stated in this article are correct at the time it was published.
Sources: Naked; Naked(2); Naked(3); Naked(4);
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