Quick Facts

• Get insurance quotes in 90 seconds using your phone
• Premiums from R85 per month for item cover
• Car insurance from R531 per month (risk-dependent)
• All insurtech companies must be FSCA registered
• South Africa has over 130 insurtech companies

1. What is Insurtech?

Insurtech means insurance technology. It combines insurance with digital tools like apps and artificial intelligence.

Traditional insurance required phone calls, paperwork, and office visits. Insurtech lets you get insurance completely online using your phone.

In South Africa, insurtech is changing how people protect their cars, homes, and belongings. You can now get a quote in 90 seconds and buy cover instantly.

Simple explanation: Insurtech is like online banking for insurance. Instead of going to an office, you use an app on your phone.

2. How Insurtech Works

Insurtech companies use technology to make insurance faster and cheaper. Here is how they do it:

Step 1: Artificial Intelligence (AI)

AI is computer software that can think and make decisions. Insurtech companies use AI to work out how much risk you have.

For example, if you want car insurance, the AI looks at your car type, where you live, and how you drive. It then calculates a fair price for you.

Step 2: Mobile Apps

You download an insurtech app on your phone. The app lets you take a photo of what you want to insure.

The AI looks at the photo and tells you how much the insurance will cost. Everything happens on your phone in minutes.

Step 3: Digital Processes

When you need to claim, you use the app. You take photos of the damage and upload them. The AI checks the claim and processes payment to your bank account.

No phone calls. No waiting in queues. No paperwork.

3. Major South African Insurtech Companies

These are the main insurtech companies operating in South Africa in 2025:

Company	What They Offer	Special Feature
Naked Insurance	Car, home, and item insurance	Get quotes in 90 seconds. Pause your car cover when not driving.
Pineapple	Car, home, and per-item cover	Peer-to-peer insurance. Get unused premiums back at year end.
King Price	Car, home, and personal insurance	Premiums decrease monthly as your car loses value.
OUTsurance	Car and home insurance	App-based quotes. Usage-based pricing.
Everything.Insure	Digital marketplace for all insurance	Compare multiple insurers on one platform.

Important: All these companies must be registered with the Financial Sector Conduct Authority (FSCA). Check their FSP numbers before you buy insurance from them.

✅ 4. Benefits of Using Insurtech

Insurtech offers many advantages compared to traditional insurance:

Lower Costs

Insurtech companies have lower running costs. They do not pay for big offices or many staff members. They pass these savings to you through cheaper premiums.

Example: Traditional car insurance might cost R850 per month. The same cover with an insurtech app might cost R531 per month.

Speed and Convenience

Get a quote in 90 seconds. Buy insurance immediately. Submit claims from your phone. No waiting on hold for customer service.

24/7 Access

Traditional insurance offices close at 5pm. Insurtech apps work any time, day or night. You can get insurance at midnight if you need it.

Personalised Pricing

The AI looks at your specific situation. If you are a safe driver, you pay less. If you drive under 300km per month, you can get up to 30% discount with some insurers.

Transparency

You can see exactly what you are paying for. Some insurtech companies like Pineapple show you where your money goes. If there are unused premiums, they give money back to you.

Flexibility

With traditional insurance, you are locked in for a year. Many insurtech providers let you pause cover, change cover, or cancel easily through the app.

5. How to Use Insurtech Apps (Step by Step)

Getting insurance through an insurtech app is simple. Here is how to do it:

Step 1: Download the App

Go to Google Play Store or Apple App Store. Search for the insurtech company you want. Download their app to your phone.

Popular apps: Naked Insurance, Pineapple, King Price, OUTsurance.

Step 2: Create Your Account

Open the app. Enter your ID number, phone number, and email address. Create a password. The app will send you a verification code.

Step 3: Take a Photo

Use your phone camera to take a clear photo of what you want to insure. This could be your car, your phone, your laptop, or your home.

The AI will analyse the photo and identify what it is.

Step 4: Answer Questions

The app will ask simple questions. For a car, it might ask where you park it, how far you drive, and if you have an alarm.

Step 5: Get Your Quote

Within 90 seconds, the app shows you the monthly premium. It tells you what is covered and what is not covered.

Step 6: Choose Payment Method

You can pay monthly by debit order from your bank account. Or you can pay yearly for a discount.

Enter your bank details. The app will set up the payment.

Step 7: Your Cover Starts

Once payment is confirmed, your insurance starts immediately. You get a policy document sent to your email. You can also view it in the app.

6. Costs and Premiums (What You Will Pay)

Insurtech premiums are usually cheaper than traditional insurance. Here are typical costs in December 2025:

Type of Cover	Average Monthly Premium	What It Covers
Per-Item Cover	From R85	Single items like phones, laptops, cameras
Home Contents	From R77	Furniture, appliances, personal belongings
Car Insurance	From R531	Comprehensive cover for accidents, theft, damage
Home Building	From R450	Structure of house, roof, walls, windows

Factors That Affect Your Premium

Your actual cost depends on several things:

• Item value: More expensive items cost more to insure.
• Your location: High-crime areas have higher premiums.
• Security measures: Burglar bars, alarms, and car trackers reduce premiums.
• Your age: Younger drivers often pay more for car insurance.
• Claims history: If you claimed before, you might pay more.
• Usage: Drive less, pay less. Some apps offer discounts for driving under 300km per month.

Hidden Costs to Watch For

Most insurtech companies are transparent. But always check for:

• Excess amount: This is what you pay when you claim. It might be R2,500 to R5,000.
• Admin fees: Some companies charge R15 to R30 for changes to your policy.
• Cancellation fees: Check if there is a penalty for stopping your cover.

7. FSCA Regulations and Safety

In South Africa, all insurance companies must be registered with the Financial Sector Conduct Authority (FSCA). This includes insurtech companies.

What is the FSCA?

The FSCA is the government body that supervises insurance companies. They make sure companies treat customers fairly and follow the law.

Every legitimate insurtech company has an FSP number. FSP means Financial Services Provider. This number proves they are registered and regulated.

How to Check if an Insurtech Company is Legitimate

Step 1: Ask the company for their FSP number.

Step 2: Visit the FSCA website at www.fsca.co.za

Step 3: Click on “Search for FSPs”

Step 4: Enter the FSP number or company name.

Step 5: The website shows if the company is authorised. It also shows what type of insurance they can sell.

Your Rights as a Consumer

Under South African law, you have these rights:

• The right to clear information about what you are buying.
• The right to cancel within 31 days if you change your mind.
• The right to fair claims handling.
• The right to complain if you are unhappy.
• The right to privacy. Your data is protected under POPIA (Protection of Personal Information Act).

Verified FSP Numbers for Major Insurtechs

Company	FSP Number	Status
Naked Insurance	FSP 48822	Authorised
Pineapple	Check FSCA website	Authorised FSP
OUTsurance	Check FSCA website	Authorised FSP

Always verify: Numbers can change. Always check the FSCA website before buying insurance.

🚨 8. Insurance Scams to Avoid

As insurtech grows, scammers are creating fake insurance apps and websites. Here is how to protect yourself.

Common Insurance Scams in South Africa (2025)

Red Flags – Signs of an Insurance Scam

• No FSP number or a fake FSP number.
• Pressure to sign up immediately.
• Premiums that seem too good to be true (like R10 per month for car insurance).
• Asking for payment via cash deposit or Bitcoin.
• No physical address or contact number on their website.
• Poor quality website with spelling mistakes.
• They contact you first with an unsolicited offer.

What to Do If You Are Scammed

Step 1: Report to FSCA immediately. Call 0800 110 443.

Step 2: Report to South African Banking Risk Information Centre (SABRIC).

Step 3: Report to your bank if you gave banking details.

Step 4: Open a case with the South African Police Service (SAPS).

Step 5: Report to The Insurance Crime Bureau on their toll-free line.

Organisation	Contact Number	Purpose
FSCA	0800 110 443	Report unlicensed insurance companies
SABRIC	0860 123 000	Report fraud and scams
Insurance Crime Bureau	0860 FRAUDLINE	Report insurance fraud anonymously
SAPS	10111 (emergency) or 086 001 0111	Open criminal case

⚠️ How to Complain About Your Insurtech Provider

If you have a problem with your insurtech company, follow these steps:

Step 1: Complain to the Company First

Contact the insurtech company through their app or website. Explain your problem clearly. Keep a record of your complaint.

The company has 6 weeks to respond and try to fix the problem.

Step 2: Escalate to the National Financial Ombudsman (NFO)

If the company does not fix your problem within 6 weeks, you can complain to the National Financial Ombudsman.

The NFO is a free, independent service that resolves disputes between consumers and financial institutions.

Contact NFO:

• Phone: 0860 800 900
• Email: info@nfosa.co.za
• Website: www.nfosa.co.za

Step 3: FAIS Ombud for Advice Issues

If your complaint is specifically about bad financial advice given by an agent or broker, contact the FAIS Ombud.

Contact FAIS Ombud:

• Phone: 012 762 5000
• Email: info@faisombud.co.za
• Website: www.faisombud.co.za

What You Need for Your Complaint

• Your policy number
• Company name and FSP number
• Clear description of your problem
• Copies of correspondence with the company
• Your ID number
• Evidence like photos, emails, or bank statements

10. Alternatives to Insurtech

Insurtech is not for everyone. Here are other ways to get insurance in South Africa:

Traditional Insurance Brokers

Insurance brokers are people who help you find insurance. They compare different companies for you. They work face-to-face and on the phone.

Best for: People who prefer talking to a person. People with complex insurance needs.

Traditional Insurance Companies

Big insurance companies like Sanlam, Old Mutual, Discovery, Santam, and MiWay still operate traditional services.

Best for: People who want a well-established company. People who do not use smartphones much.

Bank Insurance Products

Most South African banks offer insurance. You can get it when you open a bank account or credit card.

Examples: FNB, Standard Bank, ABSA, Nedbank, Capitec.

Best for: Convenient if you already bank with them. Often bundled with other services.

Stokvels (Traditional Savings Groups)

Some stokvels offer burial cover and emergency funds. This is traditional community-based protection.

Best for: People who trust community support. Those who prefer cash-based systems.

Warning: Stokvels are not regulated like insurance companies. You have less protection if something goes wrong.

Comparison: Insurtech vs Traditional Insurance

Feature	Insurtech	Traditional Insurance
Speed	Quote in 90 seconds	Can take days
Cost	Usually cheaper (from R85/month)	Usually more expensive
Convenience	24/7 access via app	Office hours only
Human Support	Limited (mostly chatbots)	Full human service
Paperwork	All digital	Often requires forms
Claims Process	Upload photos on app	Physical assessment needed

Insurtech is transforming insurance in South Africa. It makes protection more affordable and accessible. But you must be careful.

Do this:

• Always verify the FSP number on the FSCA website before buying.
• Read what is covered and what is not covered.
• Check the excess amount you will pay when claiming.
• Start with small items before insuring expensive things.
• Keep screenshots of your policy documents.

Avoid this:

• Clicking links in unexpected SMS or emails about insurance.
• Sharing your banking password or PIN with anyone.
• Paying large amounts upfront without verifying the company.
• Using insurance apps not on official app stores.
• Trusting deals that seem too good to be true.

Best insurtech companies to start with: Naked Insurance (FSP 48822), Pineapple, OUTsurance, and King Price are well-established and FSCA registered.

If you have never used insurtech before, start by insuring one small item like your phone. This lets you see how it works without big risk.

Remember: Technology makes insurance easier. But you still need to be careful and verify everything. Use the FSCA verification tools. Keep your personal information safe. And report any suspicious activity immediately.