OPES and its transformation journey through digitalization.

The strategy of moving forward through digitalization has helped OPES, a young insurance company, achieve breakthrough growth in revenue, market share, and reputation in 2023. In 2024, the company aims to increase profits by 5.5 times compared to the previous year.

Transformation through digitalization

Following significant breakthroughs and serious investments in technology, in 2023, OPES - a subsidiary of VPBank - successfully issued over 109.3 million non-life insurance policies, with a cumulative customer base of up to 11 million people.

Reportedly, during peak periods, OPES can issue up to over 500,000 insurance policies per day, and this number is expected to continue increasing in 2024.

At the end of the 2023 fiscal year, OPES recorded pre-tax profit (PTP) of over VND 156 billion, an increase of nearly 140% compared to 2022. Notably, the company's total insurance business operating expenses decreased by approximately 44% compared to the previous year, thanks to the optimization of its digital sales platform and increased cross-selling within the ecosystem, resulting in reduced operating and sales costs.

“The past year has been a pivotal one, marking significant changes for OPES in terms of technology infrastructure, management, and multi-channel sales and partnerships. Technological upgrades have helped OPES increase operational efficiency and shorten contract processing times. In addition, OPES has focused on diversifying products and sales channels to reach a wider range of customers across various segments, social classes, and needs,” explained Mr. Dang Hoang Tung, CEO of OPES, regarding the company's outstanding performance.

OPES invests heavily in technology with the goal of becoming a pioneering and innovative digital insurer , bringing new experiences to customers.

Unlike established insurance companies in the market, OPES aims to become a digital insurance company from the outset. Accordingly, the company has invested heavily in technology infrastructure and digital transformation from within and without. This is seen as a strategy to create a competitive advantage for OPES in the medium to long term, helping to optimize operating costs and improve revenue and profits.

In an effort to meet the diverse and practical needs of its customers, OPES has expanded its range of insurance products, spanning from home insurance to screen breakage insurance, mobile device insurance, and many others, forming a shield of maximum and convenient protection for customers' life experiences. OPES' products are also contributing to and enriching VPBank's comprehensive ecosystem of financial products, services, and solutions.

In addition to leveraging the existing ecosystem of its parent bank, VPBank, to boost cross-selling across digital channels such as VPBank NEO, OPES is also collaborating with major partners inside and outside the ecosystem to provide services and expand its market share in Vietnam.

In addition, in 2023, OPES partnered with two well-known insurance brands in the market, Military Insurance (MIC) and Petrolimex Insurance (PJICO), to introduce the O•CAR auto physical damage insurance product for individual and small and medium-sized enterprise (SME) customers of VPBank through the VPBank O•CARCARE program. This large-scale cooperation program brought together more than 200 branches and transaction offices, along with 132 business units nationwide, 7,370 sales staff, 460 professional adjusters, and 2,639 affiliated garages.

Building on the results achieved in 2023, OPES aims for a pre-tax profit increase of more than 5.5 times in 2024, equivalent to VND 873 billion. The target for gross premium revenue is to grow by more than 100%, placing OPES among the top 10 largest non-life insurance companies in Vietnam.

These are significant challenges during a relatively quiet period for the insurance market, but they also present a great opportunity for OPES to establish itself on the global stage.

To realize these goals, OPES stated that it will continue to boost business, maximize the potential of insurance products within the ecosystem, and optimize operating costs.

This company is actively upgrading its D2C platform and implementing digital marketing activities to enhance its digital insurance brand. OPES will move towards digitizing the entire customer journey and improving the customer experience, becoming a pioneering and innovative digital insurance company in Vietnam in the coming years.

OPES is developing strongly across multiple channels, partners, and touchpoints based on advanced technology to better meet the ever-increasing needs of customers for non-life insurance.

Beyond its inherent strengths, the backing from its parent company in terms of capital and the privilege of accessing a customer base of up to 30 million people, nearly one-third of Vietnam's population, within its ecosystem, is also one of the springboards that helps OPES realize its ambitious business goals in 2024 and subsequent years - especially given the significant potential for growth in the insurance industry in general and non-life insurance in particular.

According to data from the General Statistics Office, in the first quarter of 2024, total insurance premium revenue was estimated at nearly 53.3 trillion VND, a decrease of 4.3% compared to the same period in 2023. However, the non-life insurance sector emerged as a bright spot with growth reaching 9.8%, equivalent to nearly 19.6 trillion VND.

According to market research firm Statista, Vietnam's non-life insurance market could grow to a gross premium income of US$5.75 billion (approximately VND 144 trillion) in 2024. On average, per capita spending on non-life insurance could reach approximately US$58, or VND 1.45 million. However, this figure is still quite modest compared to developed countries like the US (US$3,371, or approximately VND 84.3 million).

With annual GDP growth among the highest in the region and the world (2023: 5.05% - higher than global economic growth of 2.9%), coupled with increasing awareness and demand for physical insurance, Vietnam's non-life insurance sector is expected to grow rapidly and strongly in the coming period.

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