Naked uses AI and automation to assess claims, match veterinary treatments to reported incidents and speed up payments. (Image supplied)
Naked Insurance has introduced an artificial intelligence (AI)-powered pet insurance product for cats and dogs.
Accident-only cover starts at R40 a month for cats and R55 for dogs, and automated claims processing allows some payouts within minutes.
The digital insurer uses AI and automation to assess claims, match veterinary treatments to reported incidents and speed up payments, according to Sumarie Greybe, co-founder of Naked Insurance.
The main competitors to Naked Insurance in South Africa’s pet insurance market include Dotsure, Oneplan, MediPet and OUTsurance.
Greybe told ITWeb in a telephonic interview yesterday that about 60% of claims are paid within 48 hours, while the quickest claim processed so far took 12 minutes from submission to payment.
Naked’s early claims data shows a median turnaround time of 1.3 days from submission to payment, with approximately 29% of claims paid within an hour of approval.
Straightforward claims can be processed automatically, while others may be referred for human review. Customers submit claims through the Naked app by uploading their veterinary invoice and answering a few questions.
“For many of our customers, their pets are part of their family. When a pet needs emergency treatment, you’re already worried about what might be wrong and whether they’ll recover,” says Greybe.
“The last thing you want to worry about is how you’ll pay the vet bill, or how long you’ll have to wait to get your money back. That’s why we set out to make claiming easy and pay customers back as quickly as possible.”
The product offers three cover options: accident-only cover, accident-and-illness cover, and more comprehensive cover that includes physiotherapy and routine care, such as preventative treatments, vaccinations and check-ups.
Sumarie Greybe, co-founder of Naked Insurance.
Customers can choose annual cover limits ranging from R15 000 to R120 000 and select an excess that suits their budget. The premiums do not vary according to the pet’s age, Greybe said, although dogs are subject to an age eligibility limit of 10 years.
Policyholders can use any registered veterinarian in South Africa and manage their policies through the app.
There are no treatment-specific sub-limits. Eligible treatments − including blood tests, scans, surgery, hospital stays, veterinary visits and prescribed medication − are covered subject to the selected annual and per-claim limits.
This allows customers to use their available cover for eligible treatment without facing a separate monetary cap for a particular procedure.
“People need to understand and control what their cover will pay for before they’re faced with a vet bill,” said Greybe. “Giving customers a choice of cover and clear limits is as important as making the claims process quicker.”
During onboarding, customers provide information about their pets’ medical history through a conversational process. The system also uses automated checks to verify bank details and match claims information with veterinary invoices.
Greybe said Naked’s digital-first approach is intended to improve efficiency and reduce the administrative burden on customers, while retaining access to human assistance for cases that require it.
“We do not want to make it difficult for customers to speak to a person,” she said, adding that policyholders can access an expert through the platform.
Pet insurance is the latest addition to Naked’s digital insurance platform, which also offers cover for cars, homes, contents and standalone items.
“We’ve been collecting feedback from customers to make sure the product works in the way pet owners and their pets need it to,” says Greybe.
“We’re applying the technology and experience we’ve built across our other products to make pet insurance easier to understand and manage, and to help customers get their claims resolved quickly.”
Naked’s entry into pet insurance comes amid an opportunity to expand cover among South African pet owners.
Greybe estimates there are about 10 million pets in South Africa, but only a small proportion are insured.
She says the company has observed a growing trend, also evident internationally, of owners seeking financial protection for their pets.
“For many customers, pets are family, and they want to make sure they have the money available to help them get better if something happens,”
Naked has not announced formal partnerships linked to the launch, although Greybe notes the company has maintained close relationships with animal rescue organisations.
The insurer’s initial offering is limited to cats and dogs.