Having completed the digital claims project in early 2020, VÍS’s next digital innovation priority was a telematic car insurance product, which would significantly shake up Iceland’s young driver insurance market.
With the belief that prevention is better than cure, the company’s vision was to create a car insurance product that encouraged safe driving. Combining telematics with gamification would particularly appeal to young drivers, who would get lower premiums for safer driving.
This project gained even more impetus as the pandemic crisis hit. “Suddenly, people were driving much less,” explains Guðný. “Some insurers started to offer partial refunds on premiums, but these offers were entirely arbitrary since no one knew how long this disruption would continue.”
VÍS had the perfect proposition for a rapidly changing market—a car insurance policy that priced solely on driver behavior. This usage-based insurance model would mean careful, low-mileage drivers would pay proportionally less than high-mileage drivers with a more aggressive driving style. Crucially, VÍS wanted to remove industry-standard age risk tables from the premium calculation so that premium pricing was no longer unfairly stacked against careful young drivers—potentially a global first for the insurance industry.
To launch this new product as soon as possible, VÍS turned to Deloitte and OutSystems.