Laka
Company Profile
Geographical Market
About
Laka is community-based insurance that is focused on bicycle insurance. Micro-mobility including bicycles is a burgeoning mode of transport both for commuting and e-commerce deliveries. Bicycles have a different insurance dynamic to motor vehicles, providing an opportunity for a specialist insurer. Laka was built organically with a strong community of cycling enthusiasts. In a traditional model, an insurer collects money based on what they believe the claims will be and their target margin. If the claims are lower than forecast then their margin is higher, incentivising them to pay out fewer claims and incentivising individuals to claim more as it doesn't impact their premium. In Laka's model, claims are received and then once Laka knows what claims are in any given month they charge customers the sum of those claims plus a pre-defined margin. This means that they are not incentivised to pay out less and individuals know that if they claim this leads to everybody paying more in a month. The hypothesis is that this community-led model results in less fraud because it highlights the collective nature of insurance.
