The insurance industry today faces a host of challenges that stand in the way of growth and customer satisfaction. Among these are limited customer engagement, declining loyalty, high acquisition costs, and a growing frustration over a lack of transparency and personalization.

For the past twenty years, telematics insurance has been touted as a potential game-changer, offering the promise of a more proactive and tailored insurance experience. Yet, despite its potential, telematics has struggled to gain foothold in most markets. Why? According to Icelandic Insurtech company Verna, there are three main reasons for this:

• Negative User Experience: Many insurers expect customers to install a black box in their car. This is too complex and can deter engagement right from the start.
• Privacy Concerns: Customers are not comfortable with sharing their driving data and how that information might be used in claims assessments. This can create significant barriers to adopting telematics solutions.
• The "Forever Score" Dilemma: When drivers begin tracking their behavior at the start of a new period, the impact of any single trip—especially after the 201st journey—feels minimal. This lack of immediate incentives can lead to disengagement from the telematics app. 

Verna develops smart insurance solutions, using technology and data to incentivize cooperation and risk-reducing behaviour. The Verna Digital Motor Insurance product combines telematics with an ecosystem of services that helps customers use the car on daily basis.  Customers control the price with the Verna app, which creates their personalized driving score and provides them with feedback on how to drive better and lower the price every month.

How it works

Verna uses the sensors in the standard phone to assess how people are driving. This makes it easier for the customer onboarding, which takes less than two minutes. And the data is equally good. Verna also carefully addresses privacy issues. The overall scores are shared, but the individual trip data is private and only accessible from the customer’s phone, because the customer might not be comfortable sharing that.

Its integrated ecosystem of value-added services enhances daily driving experience. It helps customers daily, like pay for parking, finding the cheapest gas, car washing stations and tire changes in the neighbourhood etc.

Through gamification, the Verna app encourages safer driving behaviors by rewarding users with credits and discounts for improved driving performance using a "sticks and carrots" approach.

Why we selected Verna for ITC DIA Europe?

Verna addresses issues that insurers and policyholders have with telematics, such as: lack of engagement, lack of privacy, lack of customer experience and high onboarding costs. Fridrik Thor Snorrason, CEO at Verna, took the stage at ITC DIA Europe to demonstrate their telematics app.

Who is Verna?

Verna is an Insurtech company based in Iceland, with the mission to help insurers deliver fully digital motor insurance products to their end-customers. Before starting to sell their services outside of Iceland, they tested it out first by opening up an MGA in Iceland.

Verna started two and a half years ago and already have a 2.5% market share in Iceland. Since opening up their ecosystem to anyone – also those who do not insure with Verna –  the number of app users has tripled.

Fridrik Snorrason, CEO at Verna

Learn more on Verna's website