The Naked Difference: a win-win business model that drives social impact and customer benefit

• Low accident claims mean a bigger windfall for NPOs
• 7 more organisations to be part of programme from next year

AI-driven insurtech, Naked, has announced that it has declared R815 000 under the Naked Difference programme and that at least six South African non-profit organisations (NPOs) will benefit from payments this year. Naked has also added seven new causes to the programme, each of which will benefit from the Naked Difference programme from next year.

This is the second Naked Difference payment declared by Naked, which launched in 2018. The pay-out is substantially up from the R250 000 paid out under the programme last year, reflecting the strong growth of Naked’s customer base.

The Naked Difference shares money left in the Naked claims pool at the end of each year with causes chosen by customers.* This is not a traditional corporate social investment, but a new business model where customers benefit from a company acting in their best interests and serving the greater good of society.

“In the traditional insurance business model, the insurance provider earns more profits when it pays less in claims. This leads to mutual distrust between insurance companies and their customers because of the conflict of interest it creates,” says Sumarie Greybe, co-founder of Naked. “Resolving this inherent contradiction in the insurance experience takes more than the best digital technology – it demands a rethink of the old-school business model.

“Because we are transparent about the flat fee we earn and do not profit from money left in the claims pot, customers know they won’t need to fight to get a valid claim paid and they get to enjoy being part of something that makes a difference in the community. This is a win-win innovation. Customers know the company doesn’t have any ulterior motives and the by-product of this is that Naked is able to make a meaningful contribution to communities and causes that need help.”

The NPOs that will benefit from the Naked Difference pay-out are:

• Christel House, a non-profit school in Cape Town that works to transform the lives of children living in poverty;
• Cotlands, a non-profit early childhood development organisation;
• Door of Hope, a charity that cares for abandoned babies;
• Greenpop, a registered NPO who works to restore ecosystems and empower environmental stewards;
• Living Legends, which implements sport and life skills programmes for impoverished youth; and
• Oscars Arc, which runs the WOOF Project, a pop-up adoption initiative for shelter dogs.

“Christel House is honoured to be part of the Naked Difference programme and seeing how its innovative model is changing how businesses can make a difference in society. As a non-profit school serving close to 1000 students from the Cape Flats, we’re experiencing first-hand the impact of Covid-19 on our students and our families. The latest payment from the Naked Difference will help us to provide essential healthcare and medical supplies to our students through our on-site clinic at the school. In doing so, the funds will help keep our students healthy and focused on their academics. Thank you to all the loyal Naked customers for helping us to support the students of Christel House during these challenging times.” — Adri Marais, CEO at Christel House.

“We are beyond grateful for all the Naked customers who have selected Greenpop as their cause. This year’s Naked Difference contribution will help us equip individuals with the skills and resources to sustainably grow food at home through our Family Food Garden Project. We cannot wait to see this contribution flourish and grow.” — Carla Wessels, Partnerships & Communications Manager at Greenpop.

“In these challenging times when shelters are bursting and resources are few, a payment of this magnitude enables our organisation to focus on a specific project that will make a profound difference in the lives of shelter dogs and the families who chose to adopt a dog. We plan to use the Naked Difference funds to convert an additional shipping container so that we can begin regular WOOF Project activations in Gauteng, in addition to those in the Western Cape. This opportunity will not only save thousands more lives in the years to come, but will also enable Oscars Arc to spread the positive experience of dog adoption to a larger audience.” — Joanne Lefson (Director), Oscars Arc.

“We appreciate the Naked Difference programme’s help in making our Youth Day Competition prizes possible, and we look forward to our next instructors development workshop in July, also made possible by the Naked Difference payment.” — Liesl Cronje, Managing Director at Living Legends.

Based on customer nominations and requests, Naked has added seven new causes to the programme, with the beneficiaries representing a balanced spread of organisations making a positive difference in their communities. From next year, the following organisations will also benefit from the Naked Difference programme.

• The Kolisi Foundation, Siya and Rachel Kolisi’s foundation, which supports people living in under-resourced communities;
• JAM (Joint Aid Management), a non-profit that provides meals for vulnerable children and communities;
• CHOC Childhood Cancer Foundation South Africa, a non-profit organisation that supports children and teenagers diagnosed with cancer or life-threatening blood disorders;
• TEARS, a women-led organisation that offers 24-hour support to victims of gender-based violence;
• Surfpop, which runs surfing, nutrition and education programmes for children in townships;
• The Beach Co-op, which has a mission to eliminate, reuse, redesign and recycle single-use plastic; and
• The Baby Box Project, which works with public hospitals to deliver hampers to help new mothers to care for their babies.

Adds Greybe: “We’re delighted that we were able to increase the Naked Difference pay-out this year after a year of strong customer growth and relatively low vehicle accident claims. We are especially grateful to have the opportunity to expand our reach and support more worthy causes in South Africa. It’s pleasing to see how engaged our customers are in this programme, which lets them select a cause that matters to them on the Naked app.”

For more on the second Naked Difference payments, visit https://www.naked.insure/difference.

*EDITOR’S NOTE: Unlike conventional insurance providers, Naked charges a fixed percentage of customers’ premiums to do everything. This flat fee means that its income doesn’t depend on how much it pays out in claims. When claims are low, the surplus remaining in the collective claims pool at the end of the year goes to causes customers care about