In recent years, the Vietnamese insurance industry has entered a significant digital transformation stage with the strong development of technology in management and sales. The application of technology is the key to helping insurance businesses break through in a highly competitive market. The CEO of OPES Insurance Company – Mr. Dang Hoang Tung – shared his thoughts on this matter.
Hello, as the leader of a non-life insurance company, how do you assess the development of the Vietnamese market in the past year and its prospects in the near future?
According to data from the Ministry of Finance, as of November 2023, the total insurance premium revenue of the whole industry is estimated at VND 227,600 trillion, of which the non-life insurance market increased by 2%. The total value of insurance benefits paid is estimated at about VND 86,470 trillion, an increase of 31% compared to the same period last year. These figures indicate that despite facing common difficulties, non-life insurance still shows positive signals, especially the strong increase in insurance benefit payments, demonstrating the positive contributions of businesses to social welfare and building trust with customers.
However, I believe that this development is not commensurate with the existing potential as the growth rate is still relatively slow. According to market research in Vietnam, customers are still cautious and reluctant to purchase insurance due to complicated contract procedures and complex rules and terms. But at the same time, the growth rate of e-commerce, mobile devices, and social networks is very fast. If businesses can catch the technology wave, actively embrace digital transformation, build trust, provide products that meet customer needs, and diversify channels and distribution methods, they will be able to exploit the existing potential and take the lead in the market.
It is known that in 2023, OPES recorded revenue of over VND 1,600 trillion, issued more than 140 million insurance contracts, doubling compared to 2022. What has contributed to this growth?
Last year was considered a milestone year marking significant changes of OPES in terms of technology infrastructure, management, multi-channel sales, and partners. Upgrading technology helps OPES increase operational efficiency and shorten contract processing procedures. At peak times, OPES reached the milestone of issuing 500,000 online insurance policies per day, but the processing system was very fast, stable, and highly secure.
In addition, OPES also focuses on diversifying products and sales channels to reach a wide range of customers in different segments, classes, and needs. Thanks to that, after 6 years of operation, OPES has had more than 13 million customers nationwide, and according to regular surveys, more than 90% are satisfied with the experience we provide.
In your opinion, how is technology impacting both the customer behavior and the operation of insurance companies?
Instead of having to search for agents and salespeople to buy insurance, customers can perform a few simple online steps. Compensation procedures and processes are also carried out on the digital platform without having to wait for many days to submit paper documents and approvals as before.
As for insurance companies, technology can impact all stages, from market research, product development based on big data, interacting with customers through virtual assistants (AI, Chat bot) to digitizing sales, management processes, claims assessment, and settlement of insurance benefits… Technology helps businesses improve service quality, save time, costs, and resources significantly. It can be said that the application of advanced technology in the non-life insurance field has brought and will bring new, practical, and unprecedented values to society.
OPES is developing multi-channel, multi-partner, and multi-touchpoint models based on advanced technology to better meet the needs of non-life insurance customers.
OPES is one of the few non-life insurance companies in Vietnam aiming to digitize the entire business and management process. Can you share more details about this?
OPES is committed to investing significantly in technology, including infrastructure and solutions, from the early days of establishment to support long-term business goals and sustainable development. As a result, nearly all internal operations and connections with business partners take place on the digital platform.
In the future, OPES will continue to adhere to this direction to research and launch unique insurance products, as well as more optimal solutions to contribute to building a convenient and sustainable life for customers.
Thank you!
