- The Chartered Insurance Institute-a moving experience
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- AIR Worldwide estimates industry insured losses resulting from Hurricane Florence’s winds and storm surge will range from $1.7bn to $4.6bn-excluding impact of ongoing unprecedented flooding
- Willis Re annual Silent Cyber Risk Outlook global survey indicates insurers are expecting increased cyber-related losses across all business lines over the next 12-months
- PRA issues consultation paper related to the extension of the Senior Managers and Certification Regime(SM&CR) to insurers
- FCA closes remaining investigations into life insurance sector without taking enforcement action
- Insurance Europe responds to EC proposal for a review of the 2009 Motor Insurance Directive(MID) expired
- Co-operators launches new digital insurance product in two months through Slice Labs Insurance Cloud Service expired
- Aviva completes share buyback prgramme expired
- AXA IM moving to the next phase of its commitment to strengthen Responsible Investment (RI) capabilities expired
- Conning publishes US Life-Annuity Consumer Markets Annual expired
- Five-year dairy farmer microinsurance project launched in Kenya-supported by ICMIF members expired
10th January 2018
InsurTech Laka challenges conventional insurance model
Laka, formerly Insure a Thing, is challenging the conventional insurance model by offering a truly disruptive bike insurance product, co-built and financially backed by Zurich.
Laka only earns fees when acting in the best interests of the consumer–namely when settling claims. No upfront payments or premiums are paid by a consumer, instead at the end of each month claims are settled as part of a group risk pool(a bike club for example) plus a fee. The payment will change each month but will be capped at the price of a traditional insurance policy, therefore, if claims performance is better than expected in one month everyone will share in that improvement.
Due to this innovative method of pooled payment calculation, consumers are also nudged towards behaving in such a way as to reduce the number of claims, which are simply reported on a smartphone and paid with no excess.
Laka has tested its model as part of the Financial Conduct Authority's(FCA’s) Regulatory Sandbox.
Co-founder of Laka, Jens Hartwig comments “While this tried and tested insurance model obviously works, we think there’s an alternative way which can benefit careful consumers–a way which shares with them the pricing and claims decision-making. We’re starting with high-value bike cover but as our model proves successful, we look to explore other products in the pipeline.”
David White, head of Retail Management at Zurich, adds “Innovation is an often over-used word but Laka is one of very few InsurTechs doing something genuinely exciting and disruptive. We look forward to working with Laka in the future as they expand their proposition further.”
Zurich Trends(723 articles)