Naked Insurance has announced that they’re giving away a R700 000 to causes chosen by their clients under the Naked Difference programme. This is the third Naked Difference payment declared by Naked.
The Naked Difference currently consists of 20 unique causes – each of which are doing inspiring work to make South Africa a better place. The causes’ missions range from helping underprivileged kids receive necessary cancer treatments, getting homeless people off the streets and into stable jobs, helping four-legged pups find their forever homes, to using dance and creative arts to keep kids occupied after school so that they stay on the right path.
The Naked Difference is the biggest game-changer about Naked. “The Naked Difference not only supports communities, it also makes sure your insurance works like you expect it to. Why? The Naked Difference aligns our interests with those of our customers.”
The way the traditional business model works is that if less money is paid out in claims, it means more profit for the insurer – so you and your insurer are constantly fighting over the same money. Naked doesn’t work like that. Instead, Naked only takes a flat fee from premiums to cover their expenses and running costs. The rest of the premiums goes into a “pot” to pay claims. At the end of the year, whatever is left in that pot – Naked doesn’t take that as profit – it gets paid to causes that Naked customers choose to support through the Naked Difference.
This means that Naked removed the link between profit and the amount paid out in claims. “Rather, our profit is dependent on getting people to join Naked and keeping them happy on our platform – just like any other tech company.”
