AI in Insurance: Lessons for Healthcare from Naked’s Success

Introduction: The AI-Powered Insurance Revolution

The insurance industry has always been built on data—but artificial intelligence (AI) is now rewriting the rules. By automating complex processes, detecting hidden patterns, and delivering hyper-personalised services, AI is enabling insurers to operate at unprecedented speed, accuracy, and efficiency.

At the forefront of this transformation is Naked Insurance, a South African insurtech pioneer that has embedded AI into every aspect of its business—from instant policy approvals to seamless claims processing. This is the story of how AI isn’t just improving insurance but reinventing it entirely.

The Rise of AI in Insurance

AI is no longer a futuristic concept—it’s a competitive necessity. Technologies like machine learning (ML), natural language processing (NLP), robotic process automation (RPA), and computer vision, are now driving efficiencies across the insurance value chain. The result? Faster decisions, lower costs, and happier customers..

Key AI Technologies Reshaping the Industry

• Machine Learning (ML): Supercharges underwriting and fraud detection by analysing vast datasets for risk patterns.
• Natural Language Processing (NLP): Powers AI chatbots that handle customer queries, process claims, and even explain policy details—just like a human would.
• Robotic Process Automation (RPA): Automates repetitive back-office tasks such as data entry, document processing, and policy management, reducing manual workload and human errors.
• Computer Vision: Used in claims processing to analyse images and videos for damage assessment, allowing insurers to settle claims faster and more accurately.

Together, these innovations are creating a smarter, fairer, and more customer-centric insurance experience.

Naked Insurance: A Fully AI-Driven Model

Unlike traditional insurers weighed down by legacy systems, Naked was built from the ground up as a digital-first insurer. Since its launch in 2018, it has replaced call centres and manual processes with AI-driven automation, delivering unmatched speed and transparency.

AI-Powered Innovations at Naked

1. Instant, Smarter Underwriting

Traditional insurers: Days of paperwork, manual checks, and waiting.

Naked: A final quote in 90 seconds, thanks to AI that analyses driving history, vehicle condition, and real-time data.

CoverPause feature: A game-changer that lets customers reduce coverage when they’re not driving, cutting costs without hassle.

2. Claims Processing—Done in Minutes, Not Days

Filing a claim is often the most frustrating part of insurance. Naked changes that.

Customers submit claims via the app, uploading photos or videos.

AI reviews the claim instantly, verifying coverage and assessing damage.

Simple claims (like minor repairs) are paid out in minutes—no human intervention needed.

Complex cases are flagged for review, ensuring fairness without slowing everything down.

3. Fraud Detection: AI as the Ultimate Watchdog

Insurance fraud costs the industry billions annually. Naked fights back with AI:

ML models spot inconsistencies in claims, from exaggerated damage to suspicious behaviour.

Computer vision detects edited images or pre-existing damage.

AI cross-checks claims against historical data, flagging anomalies for investigation.

The result? Lower fraud losses, fairer premiums, and faster payouts for honest customers.

4. Customer Service That Never Sleeps: Meet Rose, the AI Assistant

Instead of long call centre queues, Naked’s AI chatbot, Rose, handles queries 24/7—instantly. She can:

Answer policy questions in natural language.

Help customers buy, modify, or renew policies.

Guide users through claims, tracking progress in real time.

More complex claims are flagged for manual review, ensuring fairness and compliance.

By automating routine interactions, Naked cuts costs while delivering smoother, faster service.

The Tangible Impact of AI in Insurance

AI isn’t just about efficiency—it’s a game-changer for business performance:

✔ Better Customer Experience:

Claims settled in minutes, not weeks.

24/7 support via AI chatbots.

Policies tailored to real usage and behaviour.

✔ Lower Costs, Higher Efficiency:

Automation slashes admin costs.

A leaner team means lower overheads—and more competitive premiums.

✔ Smarter Risk Management:

AI-driven fraud prevention saves millions.

More accurate underwriting reduces unnecessary payouts.

Lessons for Healthcare: Could AI Do the Same?

The success of AI in insurance offers a blueprint for healthcare, another sector drowning in paperwork, claims, and fraud. Imagine:

AI processing medical claims in seconds.

Chatbots handling patient queries and appointments.

Fraud detection systems spotting false billing.

The potential is huge—but so are the challenges, from data privacy to algorithmic bias. Naked’s approach—transparent, ethical, and human-supervised AI—provides a model worth following.

Conclusion: The Future of Insurance is AI—and It’s Here Now

Naked Insurance proves that AI isn’t just an upgrade—it’s a complete reinvention. By embracing automation while prioritising fairness and transparency, Naked offers a glimpse into the future of insurance: faster, smarter, and relentlessly customer-focused.

For insurers—and healthcare providers—the message is clear: adapt with AI or risk being left behind. The winners of tomorrow will be those who harness AI’s power without losing sight of the human element.

The revolution isn’t coming. It’s already here.

Would you trust an AI-powered insurer? The answer, for Naked’s customers, is a resounding yes.

• Naked Insurance
• Core Administrative Processing Solutions (CAPS)
• Deloitte's The State of Generative AI in the Enterprise
• Natural Language Processing (NLP) for Customer Support