British Insurance Awards 2019: Insurance Start-Up Award - Laka

Winner: Laka

The Insurance Start-Up award was handed to Laka, a company that has boosted a revival in customer trust with its “upside-down” community-based insurance model to suit both customers and insurers.

Laka has successfully transformed the age-old idea of a mutual into a modern digital version for its cycling community by rewarding members simply for looking after their possessions.

A monthly rolling policy, charged retrospectively and based on the cost of claims incurred within that month, allows customers to understand exactly what they are paying for, and that this payment helps other cyclists like themselves.

With monthly charge caps proportional to goods insured, Laka’s customers have been happy to accept flexible payments in line with claims volume and the experience has been overwhelmingly positive.

One judge said: “These guys have worked really hard to get their produce refined before coming to market and that shows in their results.”

Laka has proved beyond doubt that customers accept being charged retrospectively, that the payment default is manageable and it is possible to be seen as an ally rather than a necessary evil. Could Laka be the face of future short-tail insurance?

At Laka we’re creating the digital mutual insurer of the future. By rearranging the insurance value chain in favour of the customer we exchange underwriting risk for credit risk. It’s fantastic to get recognition as the best Insurance Start-up when there are so many fantastic insurtech and start-up businesses in the industry.

Laurence Hunter, insurance lead at Laka