DEG invests USD 4 million in South African InsurTech Naked

DEG is investing in the InsurTech company Naked to promote financial inclusion in South Africa. The platform is characterized by AI technology and a transparent business model.

Cologne, January 23, 2025 - Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG) is investing USD 4 million in the South African InsurTech company Naked. The aim of the investment is to further drive Naked's growth, with a particular focus on automation, artificial intelligence (AI) and the expansion of products and markets. Naked is part of a financing round totaling USD 38 million. Other investors include impact investor BlueOrchard, the International Finance Corporation (IFC) and existing investors such as Yellowwoods and Hollard.

Pioneering role through AI-powered insurance platform

Naked is South Africa's first fully digital insurance platform and offers private customers policies for cars, buildings and individual items. Customers can manage all insurance processes via an intuitive app - from quoting to claims reporting.

The company stands out with its innovative business model: it only keeps a fixed portion of the insurance premiums for claims calculations. Surplus funds from unused premiums are donated to charity. This reduces conflicts of interest and ensures that justified claims are processed transparently and quickly.

Contributing to financial inclusion in South Africa

DEG sees the investment as an opportunity to promote financial inclusion and digitalization in South Africa. Naked facilitates access to affordable insurance services and thus creates new opportunities for many people in the country.

Improved access to insurance is an important driver for economic transformation

Monika Beck, Member of the DEG Management Board

The current financing round represents a significant milestone for Naked. "The participation of investors such as BlueOrchard and DEG confirms the strength of our business model and technology," says co-founder Alex Thomson. "With this support, we are well positioned to grow further in the coming years." DEG, one of Europe's largest development financiers, supports technological innovations in partner countries and specifically promotes InsurTech companies such as Naked. The aim is to harness the economic potential of modern technologies to enable development and growth.