Laka CEO Tobias Taupitz details how the InsurTech company’s collective model is popular with some of Europe’s biggest bike brands.

Laka, a leading bicycle insurance company, is attracting some of Europe’s top bike retailers and manufacturers. Among its clients are Decathlon, Gazelle, Riese & Müller, Tenways, Urban Arrow, and Brompton.

Laka’s innovative model eliminates upfront premiums. Customers are billed based on the previous month’s claims, ensuring transparency and capping individual costs. This approach has resonated, leading to over €200 million in insured value and €27 million in fundraising.

Transitioning from a direct-to-consumer model to retail and commercial partnerships, Laka has seen a 145% year-on-year increase in net revenue in Europe, with a 126% growth in partner revenue.

Partner-led growth

Operating in the UK and the Netherlands, Laka insures cyclists directly and through partners. Its unique model, where customers “pay for what’s needed, not what’s expected,” has garnered investor confidence. Last year, Laka raised €7.6 million from investors including Shift4Good, Autotech Ventures, Porsche Ventures, Ponooc, and Creandum. With €200 million in insured value, Laka aims to surpass €1 billion.

Laka’s partnership model is integral to its success. For instance, Gazelle includes 12 months of theft insurance with its connected e-bikes, and Decathlon has expanded its offerings to include Laka’s insurance for all bikes in the UK and the Netherlands, alongside its existing activity in France and Belgium.

Customer-centric insurance

Laka’s model ties premiums to the collective number of claims, encouraging customers to minimize claims for lower costs. Unlike traditional insurers, Laka earns a fee only after settling claims, aligning its interests with customers. Laka’s post-claim support includes repair advice and bike replacement assistance, ensuring a seamless experience.

The company’s commitment to ESG principles involves salvaging damaged bikes and recycling parts, with proceeds benefiting customers. Acquisitions like French e-bike insurance broker Cylantro and the renewal rights for CoverCloud’s bike portfolio in the UK have bolstered Laka’s expansion.

Six-time winner of the ‘Best Cycle Insurance Provider’ award, Laka’s transparency and customer focus are revolutionizing the insurance landscape. CEO Tobias Taupitz states, “We flip insurance on its head,” and has also stated Laka’s aim to be Europe’s leading micromobility service partner.

The full interview with Zag Daily can be accessed here.