Ringing in a new era of insurance

• Tradtional insurance companies are motivated to sell as many premiums as possible and limit payouts on the claims. Does this narrative sound familiar, and perhaps you or someone you know experienced an unsuccessful claim?
• This is what 500-backed bicycle insurtech company Laka is changing, and the team just raised funding from Achmea Innovation Fund. The capital will be used to expand the company’s footprint across Europe, focusing on enhancing their embedded insurance products.
• The company is challenging the traditional insurance model by tying premiums and claims tightly together, and making premiums and claims visible to all clients. The cost of premiums are calculated every month based on claims filed, so this means premiums vary monthly. But by sharing the cost of their premiums transparently with their cycling community, everyone involved is collectively incentivized to reduce loss and damages.
• By revamping the model of insurance, Co-founder & CEO Tobias Taupitz hopes to restore the spirit of community that has become lost in the tug-of-war between insurance companies and clients.
• Laka uses this notion of community to inform clients of how to prevent bike theft, such as equipping bikes with better bike locks and sensors. Tobias shared the reason for focusing on bicycles is that this affordable mode of transportation makes micromobility more accessible, convenient, and is more environmentally-friendly than a car.
• Read the full story on Forbes.