In recent years, we have witnessed a whopping bonk in bike sales, hitting a 39-year low. However, there are signs that the UK cycling market is on the road to recovery. According to Mintel, bike sales are forecast to climb 12% in 2024, reaching 2.1 million bikes. This is thanks, in part, to the increasing popularity of e-bikes.

Competition for customers will be heating up, so it’s time for retailers and manufacturers to get creative and stand out from the peloton.

That’s where cycle insurance comes in because with the help of a company such as Laka, manufacturers and retailers can:

  • Create a better customer experience
  • Attract more customers
  • Build stronger relationships with riders
  • Add revenue through upselling opportunities
  • Improve brand value, image, and reputation

Want to know more?

Share the love with embedded insurance

  • 77,313 bikes were stolen in the UK (2022/2023)
  • Seven bikes are stolen in the UK every minute (2022/2023)
  • Only 20% of stolen bikes are reunited with their owners (2022/2023)

When looking for a new bike, cyclists will spend hours researching the market to find the perfect bike because it’s more than just two wheels and a saddle. It’s an investment: their baby, personal trainer, and possibly, daily mode of transport.

Rather than just selling the bikes and waving them off, why not do something extraordinary to ensure they stay in the saddle? Enable them to protect their investment with cycle insurance from day one.

By providing embedded insurance at the point of sale, you empower your customers to protect their baby, showing that you prioritise their need to stay OTP (on the pedals).

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Did you know that a year of free insurance is often equivalent to a 10% discount? Stop discounting and add more value instead.

Ta-da! Because of your forward-thinking, you are the hero of the hour. And should the worst happen, by partnering with LAKA, your customers won’t be faced with dull insurers. Instead, they’ll deal with our Lycra-clad in-house team who live and breathe bikes.

Won’t customers rely on their home insurance?

Some home insurance providers will cover bikes as standard. Others allow add-ons to policies for an extra fee. But most have a relatively low claim limit—usually around £1500.

That figure is unlikely to be enough for most bike aficionados and definitely won’t be enough to replace a stolen e-bike.

Insurance will boost sales

Bet that got your attention.

Yes! Insurance will boost sales and help you make more money on each one.

Take this scenario for example.

Daphne has just come into your shop to look for a new bike. She wants an e-bike for leisure and her commute but worries about spending big bucks.

This is your time to shine.

“I understand your concerns, Daphne. I want you to enjoy your new bike while helping you protect your investment. Most home insurance policies won’t cover the cost of a new bike should the worst happen. However, we can offer you a policy that will protect your investment from theft, damage, accessories, travel, third-party liability and loss, and personal injury.”

You have now elevated yourself to superhero status, and Daphne can enjoy her new steed knowing she’s covered for every eventuality. In fact, she’s so pleased she’s decided to buy the next model up, and you’re delighted because every policy sold generates more profit for your business with minimal effort.

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Take-up of cycle insurance in the UK increased by 75% between 2009 and 2014.

Even the cost-of-living crisis can be an upsell opportunity

You’re probably thinking: How can the fact that we all have less money in our pockets possibly be a bonus for the cycling industry?

Yes, the demand for bikes has been hit by COVID-related supply issues and less money in our pockets. However, the cost-of-living crisis has also driven an uptake in cycling.

A recent report by Mintel identified that 34% of Brits are cycling more than they did a year ago to reduce the cost of fuel and public transport.

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According to Sustrans's recent cost-of-living report, 71% of all journeys made in England are less than five miles, and 28% are under a mile—distances that could easily be walked or cycled.

This is supported by research from Cyclescheme, which claims:

  • You can save £750 a year by cycling to work
  • 46% of people would rather cycle to work than spend money on travel
  • 67% of Brits started or considered cycling to work to decrease travel costs

All these new cycling commuters will be keen to protect their investment against pesky bike thieves, which means more selling opportunities for you.

Be a bike-saver with Laka

Being part of the cycling industry, you know how diverse bikes (and riders) can be. That’s why Laka offers a flexible coverage solution, with no annual subscription, that can be paused or cancelled at any time.

No one wants the worst to happen, but if your customer does have an off or their pride and joy is stolen, the insurance you sold them could turn a negative experience into a positive one that they will associate with your brand.

The upshot:

  • Greater customer loyalty
  • More likely to create brand ambassadors
  • Customers will be more inclined to come to you for servicing and accessories
  • Word of mouth will bring more Lycra enthusiasts your way

The growing popularity of cycling as a sustainable and healthy form of transport and growing awareness of the need for financial protection will increase the demand for cycle insurance. Don’t miss out. By offering embedded insurance, you’ll be at the front of the peloton.