Naked Insurance, the South African insurtech that launched in 2018 using AI and automation to cut insurance costs, has grown into a licensed insurer still built on that same core idea: removing the traditional cost structures that drive up premiums.
What made Naked’s model different from the start
Rather than relying on call centre sales and manual underwriting, Naked automated much of the claims and pricing process, using AI-based fraud detection to approve certain claims instantly. Its “GiveBack” model, taking a fixed portion of premiums to run the business and directing leftover claims-pool money to customer-nominated charities rather than company profit, was designed specifically to remove the conflict of interest between an insurer’s profit and its claims payouts.
Where the model has gone since launch
Naked has continued pushing that automation-first approach further, and in 2026 became the first insurer globally to offer a final, binding car insurance quote directly inside ChatGPT, extending the original “quote in minutes without a call centre” idea into conversational AI. The company remains a licensed South African insurer offering car, home, building and single-item cover.
What this means for small business owners
Insurtech models like Naked’s matter for SMEs beyond personal car cover, the same automation-first, lower-overhead approach is increasingly available for small business insurance too, often at a lower cost than traditional broker-led policies. Comparing an automated insurer’s cover limits and claims process against a traditional provider’s, rather than assuming either is automatically better, remains the more useful approach for any business buying cover.
Frequently asked questions
What made Naked Insurance different when it launched?
It automated pricing and claims using AI rather than call centres, and used a “GiveBack” model directing leftover claims-pool funds to charity rather than profit.
Is Naked Insurance still operating?
Yes, it remains a licensed South African insurer and has continued expanding its use of AI, including a 2026 launch offering car insurance quotes directly inside ChatGPT.
Does Naked’s model only cover cars?
No, it has expanded to offer home, building and single-item cover alongside its original car insurance product.
Can small businesses benefit from insurtech models like this?
Yes, similar automation-first approaches are increasingly available for small business insurance, often at lower cost than traditional broker-led cover.
Should businesses automatically choose an automated insurer over a traditional one?
Not automatically; comparing cover limits and claims processes directly is more useful than assuming either type is inherently better.
Originally published in April 2018. Updated September 2026.
Insurance industry oversight via the Financial Sector Conduct Authority.
Further reading
Originally published in April 2018. Updated September 2026 to confirm Naked Insurance remains a licensed insurer and has since extended its automation-first model into conversational AI, including a 2026 ChatGPT-based quoting launch.
