South Africa’s Naked launches pet insurance for cats and dogs, using AI to speed up claims.

South Africa’s Naked launches pet insurance for cats and dogs, using AI to speed up claims

South African insurance technology startup Naked has launched a new pet insurance product covering cats and dogs, expanding its digital insurance services into a market that remains largely untapped.

The new product allows pet owners to protect themselves against unexpected veterinary expenses, including costs arising from accidents and illnesses. It also introduces technology-driven claims processing designed to make payments faster and easier.

According to Disrupt Africa, the insurance product offers three levels of protection: accident-only cover, accident-and-illness cover, and comprehensive cover that includes physiotherapy and routine care such as vaccinations and check-ups.

Customers can choose their preferred annual coverage limit, ranging from R15,000 to R120,000, and select an excess that suits their budget. They can also visit any registered veterinarian in South Africa.

One of the product's major selling points is its use of artificial intelligence (AI) to process eligible claims automatically. Pet owners can submit veterinary invoices through the Naked app, while more complicated claims are referred to the company's team for review.

Early figures released by the company show that 60 per cent of claims are paid within 48 hours, with a median payment time of 1.3 days. Its fastest recorded payment took just 12 minutes.

Why pet insurance could become more popular

The launch comes at a time when more people are treating their pets as important members of their households.

However, veterinary treatment can be expensive, particularly when animals require emergency surgery, hospitalisation or specialised medication. These unexpected costs can put financial pressure on pet owners who are not prepared for emergencies.

Naked estimates that South Africa has approximately 10 million pets, but only a small proportion are insured. This suggests there is considerable room for growth in the pet insurance market.

By offering different coverage options and allowing customers to manage their policies digitally, Naked hopes to make pet insurance more accessible to a wider range of owners.

Its accident-only option also gives customers an entry-level choice rather than requiring them to purchase the most comprehensive policy.

What this means for South Africa's fintech industry

Naked's latest move highlights how financial technology companies are expanding beyond traditional services to develop more specialised products.

Instead of focusing only on conventional insurance categories such as cars, homes and household contents, digital insurers are exploring specific customer needs that have historically received less attention.

The launch also demonstrates the growing role of AI and automation in South Africa's insurtech sector. By using technology to assess claims and speed up payments, companies like Naked are attempting to reduce administrative delays and improve customer experiences.

Founded in 2018, Naked has developed a digital insurance platform that allows customers to obtain quotes, purchase policies and manage their cover through an app.

The company's expansion into pet insurance is therefore more than the introduction of another insurance product. It reflects a broader shift towards flexible, technology-driven financial services designed around everyday consumer needs.

As competition increases and customers demand more convenient services, South Africa's fintech and insurtech businesses may increasingly turn to specialised insurance products to reach new markets.