continuation of the case study : Our mission has always been clear: to build instant, honest, affordable insurance that people love. This might seem like a big, hairy, audacious goal, given the levels of apathy and distrust most people feel towards insurance. Then again, most worthwhile endeavours aren’t easy. We believe it’s imperative to restore people’s confidence that their insurance will do what it says on the tin, and that we are on the right track to doing just that. How are we doing this? First, through our technology. We give people total control, from enabling them to buy cover online in seconds, to allowing them to claim and manage their car, home and single item insurance directly on the Naked app. Our technology also never sleeps, meaning this can be done 24/7 and all without chatting to a call centre. These operational savings are then passed on directly to our clients, through sustainably lower premiums. The second part is the way that we run our business. Inherent in the traditional insurance model is the reality that if less is paid out in claims, it means more profit for the insurer. This results in the client and their insurer being in a constant tug of war over the same money when a claim is submitted. We don’t work like that. Instead, we take a flat fee upfront to cover running costs and profit. The rest of the money goes towards claims, with leftover premiums at the end of the year paid to causes our clients choose, rather than our bottom line – this is the Naked Difference and it changes everything about insurance. This means that our profit isn’t linked to how much we pay in claims. By aligning our interests with those of our clients, we create mutually beneficial relationships amongst Naked, our clients, and our communities. We’re well on our way to changing insurance for good When we started Naked, many people believed that our mission was unobtainable and unrealistic. This new round of funding shows how far we’ve come – but we’re just getting started. There’s so much more we’d like to do, and this funding allows us to take things to the next level – building insurance experiences that are simple to use, yet beautiful, while making them available to more and more people. We couldn’t be more excited to walk this journey of redefining insurance with you and are immensely grateful for your ongoing support. Question 3: The concepts of “shared value” and “inclusive business” provide several opportunities to organisations and their stakeholders. Evaluate the extent to which Naked is implementing the concepts of “shared value” and “inclusive business”. Your answer should contain the following points: Provide a brief introduction to the purpose of “shared value” and “inclusive business”. Outline the concept of “shared value” and “inclusive business”. Evaluate the extent to which Naked is implementing the concepts of “shared value” and “inclusive business” to Naked. Provide examples to support your answer. Propose ways in which Naked may improve upon their approach to “shared value” and “inclusive business”. Recommended readings for this question: British Assessment Bureau. 2016. Creating Shared Value – A new way of doing business? British Assessment Bureau, 13 January 2016. [Online]. Available at: https://www.british- assessment.co.uk/insights/spotlight-introducing-concept-creating-shared-value/ [Accessed 14 January 2023]. Kramer, M. R. and Pfitzer, M. W. 2016. The Ecosystem of Shared Value. Harvard Business Review, October 2016. [Online]. Available at: https://hbr.org/2016/10/the-ecosystem-of-shared-value [Accessed 14 January 2023]. Shared Value Project. 2020. What is shared value? [Online]. Available at: https://sharedvalue.org.au/about/shared- value/#:~:text=Shared%20value%20is%20a%20business,of%20society's%20most%20pressing%20i ssues. [Accessed 14 January 2023]. You are required to use a minimum of two additional academic sources, excluding the prescribed textbook, to support your argument/discussion/analysis/evaluation. Wikipedia/Investopedia/ Social Media are not regarded as academic sources.
continuation of the case study :
Our mission has always been clear: to build instant, honest, affordable insurance that people love.
This might seem like a big, hairy, audacious goal, given the levels of apathy and distrust most people feel towards insurance. Then again, most worthwhile endeavours aren’t easy. We believe it’s imperative to restore people’s confidence that their insurance will do what it says on the tin, and that we are on the right track to doing just that.
How are we doing this?
First, through our technology. We give people total control, from enabling them to buy cover online in seconds, to allowing them to claim and manage their car, home and single item insurance directly on the Naked app. Our technology also never sleeps, meaning this can be done 24/7 and all without chatting to a call centre. These operational savings are then passed on directly to our clients, through sustainably lower premiums. The second part is the way that we run our business. Inherent in the traditional insurance model is the reality that if less is paid out in claims, it means more profit for the insurer. This results in the client and their insurer being in a constant tug of war over the same money when a claim is submitted. We don’t work like that. Instead, we take a flat fee upfront to cover running costs and profit. The rest of the money goes towards claims, with leftover premiums at the end of the year paid to causes our clients choose, rather than our bottom line – this is the Naked Difference and it changes everything about insurance.
This means that our profit isn’t linked to how much we pay in claims. By aligning our interests with those of our clients, we create mutually beneficial relationships amongst Naked, our clients, and our communities.
We’re well on our way to changing insurance for good
When we started Naked, many people believed that our mission was unobtainable and unrealistic. This new round of funding shows how far we’ve come – but we’re just getting started. There’s so much more we’d like to do, and this funding allows us to take things to the next level – building insurance experiences that are simple to use, yet beautiful, while making them available to more and more people. We couldn’t be more excited to walk this journey of redefining insurance with you and are immensely grateful for your ongoing support.
Question 3:
The concepts of “shared value” and “inclusive business” provide several opportunities to organisations and their stakeholders. Evaluate the extent to which Naked is implementing the concepts of “shared value” and “inclusive business”.
Your answer should contain the following points:
- Provide a brief introduction to the purpose of “shared value” and “inclusive business”.
- Outline the concept of “shared value” and “inclusive business”.
- Evaluate the extent to which Naked is implementing the concepts of “shared value” and “inclusive business” to Naked. Provide examples to support your answer.
- Propose ways in which Naked may improve upon their approach to “shared value” and “inclusive business”.
Recommended readings for this question:
British Assessment Bureau. 2016. Creating Shared Value – A new way of doing business? British Assessment Bureau, 13 January 2016. [Online]. Available at: https://www.british- assessment.co.uk/insights/spotlight-introducing-concept-creating-shared-value/ [Accessed 14 January 2023].
Kramer, M. R. and Pfitzer, M. W. 2016. The Ecosystem of Shared Value. Harvard Business Review, October 2016. [Online]. Available at: https://hbr.org/2016/10/the-ecosystem-of-shared-value [Accessed 14 January 2023].
Shared Value Project. 2020. What is shared value? [Online]. Available at: https://sharedvalue.org.au/about/shared- value/#:~:text=Shared%20value%20is%20a%20business,of%20society's%20most%20pressing%20i ssues. [Accessed 14 January 2023].
You are required to use a minimum of two additional academic sources, excluding the prescribed textbook, to support your argument/discussion/analysis/evaluation. Wikipedia/Investopedia/ Social Media are not regarded as academic sources.
![23:36
20; 21; 22; 23
BMNG7321A1_FT
Naked Financial Technology is an authorised FSP, and our product (Naked Insurance) is
underwritten by Hollard.
2023].
Done
Adapted from:
Hollard. 2022. Specialist Insurance Partners. [Online]. Available at:
https://www.hollard.co.za/partners/specialist-insurance-partners/naked [Accessed 14 January
9
NAKED DOES NOT WORK, THINK OR MAKE MONEY THE WAY TRADISIONAL INSURERS DO.
Often to get something right, out hear and heart need to work together. Naked's revolutionary
business model does just that, and in doing so, breaks the age-old cycle of distrust between insurers
and their customers. Unlike other insurance, they charge a fixed percentage of your premiums to
do everything. No hidden fees or hidden agendas (that's why we're called Naked!). Our flat fee
means that our income doesn't depend on how much we pay out in claims, so we have no reason
to make claiming difficult. When claims are low, premiums left over at the end of the year go to
causes you care about, supporting positive change in South African communities, rather than
growing insurance company profits. That's the Naked Difference and it changes everything about
insurance.
Adapted from:
Naked. 2022. [Online]. Available at https://www.naked.insure/difference [Accessed 14 January
2023].
INSURANCE CHANGES FOR GOOD: NAKED RASIES R160 MILLION IN FUNDING
The Independent Institute of Education (Pty) Ltd 2023
2023
Since day one, our mission has been to build insurance that people love. We are still early in our
journey and by raising R160 million (US$11m) we are excited that we will be able to accelerate our
vision. Our focus will be on expanding our team, continuing to invest in the technology that puts
customers in control, meeting the insurance needs of a growing portion of the South African
market, and entering into international markets. This funding round was led by Naspers
Foundry and we look forward to working with an investor of their calibre. Existing Naked investors,
Yellowwoods and Hollard, also participated in the funding round, endorsing our growth plans and
success thus far.
Page 6 of 14](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcd448c24-6d86-4fd4-90c5-793b510b15a1%2Fee3600ce-579b-47e4-8aa1-e87755d90273%2F69xnpap_processed.png&w=3840&q=75)
Step by step
Solved in 5 steps
