“Traditional insurance models, with annual contracts, complex clauses, excesses and painful claims processes are broken,” said Tobias Taupitz, CEO and co-founder at Laka. “Our customers work as a collective to share the cost of claims that actually happen, rather than ones that might.
“We’re working with Quotezone to help bring our collective cycle insurance to a broader audience. As a city-based company with offices in London, Bristol and Amsterdam, we’re serious about getting people on their bikes more and providing cyclists with a fairer, affordable policy that doesn’t tie them down with an annual contract.
“We’re on a mission to fundamentally change what insurance means to people and build our collective of cyclists.”
Laka’s approach is based on the ‘collective’ model where customers are charged a share of the cost of claims submitted in the previous month – up to a capped fee. 80% of those premiums go towards paying for other customers’ claims, and Laka said it then gets paid when the claim is settled. If there are no claims that month, customers don’t get charged anything.
Greg Wilson, founder and CEO of Seopa, added: “Laka has no qualms about admitting that it is a company full of bike nerds – and it shows. The brand’s bicycle insurance policies put cyclists first at every stage, flipping the insurance model on its head in order to ensure bicycle owners have a fully comprehensive policy at a fairly and transparently calculated price.
“Laka’s collective approach to insurance is truly fascinating – they very openly provide customers with a calculation showing them the details of the pricing each month, using a ‘pack’ or team mentality to cover the costs of those who need it most.
“It is a great time for Laka to join our industry-leading bicycle insurance panel, as figures suggest cycling’s popularity grew at a meteoric rate during lockdown and that popularity hasn’t waned much as lockdown restrictions have been eased. We’re confident that many of these cyclists, whether new or seasoned, will be attracted by Laka’s innovative bicycle insurance offering.”
Read the October issue of BikeBiz below: