Policyholders to benefit from cheaper auto insurance through SDK-based behavior scoring system created by IMS for Vietnamese market
OPES, the first digital-only insurer in Vietnam, has teamed up with IMS, the global connected insurance solutions business, to supply smartphone app-based telematics insurance to car drivers in Vietnam. The new product, “O∙Car”, using the IMS One App SDK to deliver its core capabilities, launched to market earlier this month.
OPES is owned by Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), and according to Paul Stacy, Chief Executive Officer at IMS, the product will be the first wholly digital, telematics-based insurance offering in Vietnam, and it is aimed at the country’s ~3 million car drivers.
Paul said: “O∙Car leverages the IMS One App SDK along with our patented IMS Wedge (IMS’s patented BLE IOT sensor add-on) which helps identify the insured’s vehicle. Together, this connected insurance technology evaluates driving style and the resulting data is used to personalize the insurance product offered to OPES customers.” Paul said that OPES will also run competitions and other campaigns outside the app to reward good driving behavior.
He continued: “We’ve been working with OPES and their parent VPBank to trial the app among their own employees and customers. Because the traffic in Vietnam is highly congested and slow moving, the IMS analytics team had to develop a whole new driver behavior scoring system that is unique to the Vietnamese market. OPES and IMS tested with thousands of drivers and more than 60,000 trips to develop the scoring criteria.”
Mr. Dang Hoang Tung, Chief Executive Officer of OPES said: “This is a ground breaking opportunity for telematics-motor insurance in Vietnam and we are very excited to be pioneering the new OPES insurance app in partnership with IMS after a successful trial. Not only are we excited to join the motor insurance market with this innovative, new product but we also want to help promote and build a safe driving culture among Vietnamese drivers to help reduce the accident rate in the long run.”
Paul Stacy continued: “Having developed the process for Vietnam, we think something very similar will apply to other Southeast Asian markets where traffic flow is very different from the West.” He also noted that there are around 76 million registered car drivers in ASEAN nations, representing a huge untapped market for telematics and connected insurance.
Turning to the OPES deal, Paul said “OPES will be working with IMS to offer a number of different services using our core technologies, including our ‘try-before-you-buy’ functionality and behaviorally based rewards program. We are also expecting to help OPES in introducing mileage-based insurance to their policyholders in the future.”
Paul Stacy said the OPES deal underscored IMS’ growing international presence beyond the UK, Europe and North America. “Our approach to deal making is consultative and leverages our own deep insurance expertise. We prefer to work collaboratively with clients, such as OPES, and implement solutions that achieve the insurer’s desired outcomes – for the present day, but also with an eye to the future.”