VÍS Launches Car Insurance Priced on Driving Behavior
In partnership with CMT, Iceland’s first Usage-Based Insurance program, Ökuvísir, will focus on improving road safety.
REYKJAVÍK, Iceland–(BUSINESS WIRE)–VÍS, the leading insurance company in Iceland, announced today the launch of the first car insurance program in the country that does not use traditional factors such as age as part of their pricing criteria but instead mileage and driving behavior.
Ökuvísir, powered by Cambridge Mobile Telematics (CMT), the global leader in smartphone telematics, will allow VÍS to change the way insurance is priced focusing on actual versus perceived risk, transparent pricing, and curbing phone-based distracted driving. According to a recent survey conducted by Zenter Research for VÍS, 46% of drivers in Iceland made phone calls while driving. 55% of adults and 73% of young drivers also admitted to texting while driving.
Ökuvísir is a revolutionary app that gives VÍS´s customers constructive feedback on how they drive. VÍS´s partner CMT analyzed billions of miles traveled by millions of drivers and its research indicates that feedback and user engagement can be impactful on distracted driving, with the top 30% of drivers on their platform reducing their phone distraction by 39% after 30 days.
“Mobile phone use affects drivers’ perception of the environment and response time, resulting in more hard braking events and making it difficult to turn away from danger,” commented Ryan McMahon, CMT’s VP of Insurance and Government Affairs. “We are delighted to work together with VÍS to positively impact road safety in Iceland, and hopefully set the precedent that good insurance isn’t only about fair coverage, but also about creating safer drivers.”
In the development of Ökuvísir, VÍS undertook a thorough analysis of the road safety benefits from mobile telematics, but also of the perspective of drivers of all ages and of stakeholders including governmental, regulatory, consumer protection and road safety organizations. As such, Ökuvísir will now reward customers for good driving or for driving less. The behavior score is based on five risky behaviors: speeding, harsh acceleration, braking or swerving, and phone use. The Ökuvísir app will show drivers when and where they were driving when any of the aforementioned risky behaviors occurred. It will then generate a trip score based on CMT’s behavioral scoring algorithm that infers distraction and other dangerous driving behaviors from sensor data and behavioral science. Each driver is then given a score which they are incentivized to keep or improve by driving well or less often and earning Experience Points as well as lowering monthly payments.
“I am immensely proud of Ökuvísir,” concluded Helgi Bjarnason, CEO of VÍS Insurance Company, “it is a revolutionary new option in the Icelandic insurance market. Ökuvísir gives our customers constructive feedback on how they drive through the app, with the goal of reducing car accidents in Iceland. Therefore, we hope our customers will embrace this new option. We are thankful for a fruitful cooperation with CMT.”
VÍS is Iceland’s largest insurance company and is registered on the Icelandic stock exchange. VÍS operates an extensive branch office network around Iceland and has 210 employees. VÍS’s mission is CUSTOMER SERVICE, COVERAGE and PREVENTION and the company offers comprehensive insurance solutions for individuals, families, companies, vehicles, and properties. The company was founded on February 5, 1989 and is headquartered in Reykjavík, Iceland.
About Cambridge Mobile Telematics
CMT is the world’s largest smartphone telematics provider, powering 65 programs around the globe with leading insurers, automotive manufacturers and mobile network operators. Using mobile sensing and IoT, machine learning, and behavioral science, CMT’s telematics platform measures driving behavior to empower driver improvement and reduce risk, provides instant crash alerts and roadside assistance to drivers in need, and creates a smooth connected claims process to reduce costs and improve efficiency. CMT has more drivers on the roads, analyzes more data, enables smarter choices and gets better results. To learn more, visit www.cmtelematics.com.