# Communal Bicycle Insurance 'Laka' Offers Low Premiums Through "Crowd Insurance" By Joey Haar | Published 2018-06-07 | Business Source: Trend Hunter, https://www.trendhunter.com/trends/laka References: [techcrunch](https://techcrunch.com/2018/06/07/laka/) & [laka](https://laka.co.uk/) Insurance based around premiums doesn't actually respond to accidents as they happen in the world, allowing insurance companies to turn massive profits with relative frequency, and 'Laka' is a new [insurtech company](https://www.trendhunter.com/trends/ethos-technologies) that's using big data processing limit costs both for itself and for consumers getting coverage. The business, which is currently focused on insuring people's [high-end bicycles](https://www.trendhunter.com/trends/thecyclingcollective), uses a [communal model](https://www.trendhunter.com/trends/good-driver-mutuality) to give people comprehensive coverage while also reducing their total premiums. Whereas most insurance companies sell insurance with set premiums, Laka's premiums are variable. The company only charges premiums when someone within the community has had an accident and made a claim, distributing the cost of that claim across the network. This means that many months of Laka's coverage will be completely free. ## Trend Insights (Trend Hunter) - Score: 0.8/10 - Popularity: 3% | Activity: 13% | Freshness: 8% - Audience gender: 50% men, 50% women - Primary generations: Millennial, Gen X - Top markets: Europe ## Categories [Trend Hunter](https://www.trendhunter.com/trends) > [Business](https://www.trendhunter.com/business) > [New Ventures](https://www.trendhunter.com/newventures) ## Key Themes ### What's Driving This Trend - **Variable Premiums:** Insurance companies can explore the opportunity of offering variable premiums based on actual accidents and claims made by the community. - **Communal Insurance:** Insurtech companies can leverage communal models to provide comprehensive coverage and reduce total premiums for consumers. - **Big Data Processing:** Insurance providers can utilize big data processing to limit costs and make their coverage more affordable for consumers. ### Who This Affects Most - **Insurtech:** Insurtech companies can disrupt the traditional insurance industry by offering communal insurance models and variable premiums. - **Bicycle Insurance:** Insurance companies specialized in bicycle coverage can adopt a communal insurance model and use big data processing to provide affordable and comprehensive coverage. - **Big Data Analytics:** Companies specializing in big data analytics can partner with insurance providers to optimize costs and offer variable premiums based on data analysis. ## Related on Trend Hunter - [Thoughtful Insurance Startups](https://www.trendhunter.com/trends/thoughtful-insurance.md) - [Renter Insurance Packages](https://www.trendhunter.com/trends/coop-insurance.md) - [AI-Powered Rental Insurance](https://www.trendhunter.com/trends/lemonade-1.md) - [AI-Powered Auto Insurance Policies](https://www.trendhunter.com/trends/policyai.md) - [Premium eBike Subscription Services](https://www.trendhunter.com/trends/wombi.md) - [Discreet Connected Bike Locks](https://www.trendhunter.com/trends/laas-olock.md) - [Stress-Free Pet Insurance Plans](https://www.trendhunter.com/trends/spokk.md) - [Consummately Customizable Commuter Bikes](https://www.trendhunter.com/trends/customizable-commuter-bike.md) - [Tiered Healthcare Benefit Plans](https://www.trendhunter.com/trends/healthcare-benefit-plan.md)