Digital transformation should avoid a rushed approach, implementing numerous solutions without proper coordination among departments.
Understanding the rapid pace of change in the insurance industry due to technology, Petrolimex Insurance Corporation (PJICO) overcame the challenges of a nearly 30-year-old organization and embarked on digital transformation early on.
PJICO’s Chairman of the Board of Directors, Mr. Pham Thanh Hai, has stated that the company has been carrying out digitalization of data, processes, building a digital culture, and developing digital human resources to enhance customer experience in the digital environment since 2019. So far, PJICO has achieved numerous accomplishments, laying a solid foundation for the upcoming comprehensive digital transformation phase.
PJICO’S DIGITAL TRANSFORMATION JOURNEY
PJICO was the first joint-stock company in the non-life insurance sector, established in 1995. Nguyen Thi Huong Giang, General Director of PJICO, once mentioned that in the early stages of implementing the IT strategy, PJICO faced numerous difficulties due to two main reasons.
Firstly, the traditional organizational operating methods were deeply ingrained in the system. Secondly, it was necessary to select the right technology solutions that suited PJICO. However, these issues were gradually resolved, and information technology was gradually applied to operational stages, contributing significantly to PJICO’s management and business efficiency in recent years.
Recently, Petrolimex Insurance Corporation (PJICO) held a conference to deploy the Comprehensive Digital Transformation Program for the 2024-2028 period, combining in-person and online formats with PJICO branches nationwide. According to Mr. Pham Thanh Hai, although digital initiatives were implemented early on, the digital transformation journey is a long and challenging one, requiring determination, effort, and the participation of all employees. PJICO leaders have shared the “essential elements” to ensure successful digital transformation.
Firstly, it is the determination of leadership, a strong commitment to the digital transformation roadmap, creating favorable conditions for implementation and closely monitoring the process.
Secondly, there must be a comprehensive communication plan, timely informing all employees about the digital transformation roadmap, building consensus, and mobilizing everyone’s participation.
Thirdly, it is the issue of training and developing human resources, enhancing the capacity of employees in using digital technology, and adapting to a new working environment.
Fourthly, risk management, identifying and assessing potential risks in the digital transformation process, and building effective prevention and response plans.
In particular, Mr. Pham Thanh Hai emphasized the need to “avoid rushing, doing many solutions without coordination between units and departments.” According to Mr. Hai, in digital transformation, technology is just a means to achieve the goal. Therefore, “we need to avoid thinking that digital transformation is the job of the IT department. The success of digital transformation must lie in digital thinking, in the way each employee approaches and solves daily work.”
“This is also a lesson we learned from the process of implementing the digitization and digital transformation program from 2019 to 2024,” Mr. Hai said. In addition, PJICO leaders also mentioned mechanisms, policies to encourage and reward collectives and employees with innovative ideas, actively applying technology to production and business, bringing practical benefits to the Corporation.
BUILDING A DIGITAL TRANSFORMATION ROADMAP BASED ON MULTIDIMENSIONAL ANALYSIS
According to the Chairman of PJICO’s Board of Directors, the Corporation’s digital transformation strategy aims to enhance customer experience, put customers at the center, and open up new opportunities with innovative products and services.
Digital transformation also aims to optimize operational efficiency by automating manual processes, reducing errors, and saving time and costs. In particular, PJICO uses digital transformation to promote an innovative culture, enhance the creativity, learning, and adaptability of employees, and create a dynamic and efficient working environment.
Cooperating with strategic partner FPT Digital, PJICO’s 2024-2028 digital transformation roadmap has been built based on multidimensional analysis, including development orientation, digital status, industry development trends, and market demand.
According to Mr. Doan Huu Hau, Consulting Director of FPT Digital, this is a comprehensive transformation roadmap that maximizes PJICO’s advantages, exploits existing technology platforms, and optimizes resources to enhance competitive advantage.
Approved by the PJICO Board of Directors in April 2024, prior to the General Meeting of Shareholders, the company has achieved several commendable results after a quarter of implementation. These include the successful development and operation of the PJICO Seller App and the website baohiem.pjico.com.vn for fuel agents and bancassurance (insurance products linked with financial services); the upgrade of the My PJICO App to help customers track insurance contracts and submit claims; and the deployment of a management reporting system to all management levels across the company.
New technologies are also being researched and applied to automate internal management activities. The technology infrastructure system is reviewed, supplemented, and enhanced with 24/7 monitoring services to ensure stable operation, customer information security, system security, and provide customers with peace of mind when using PJICO’s online services. According to Mr.Tran Huy Bao Giang, General Director of FPT Digital, the comprehensive transformation program, making maximum use of the technology tools of the entire network, will create a new competitive advantage on the technology platform, helping PJICO realize its sustainable and efficient development strategy with a faster pace. PJICO leaders said that PJICO’s employees have seriously applied technology tools, fully performed process steps, entered data accurately, and supported partners and customers in installing and using the tools. As a result, the company’s data system is built fully and accurately, supporting customer service and management. General Director Ms.Nguyen Thi Huong Giang affirmed the solidarity, efforts, and strong commitment of each individual, advanced technologies have been effectively utilized, improving operational productivity, and bringing a good experience for customers. In 2023, for the first time, PJICO’s gross insurance revenue reached VND 4,000 billion, specifically VND 4,023 billion out of total revenue of VND 4,847 billion, exceeding the annual plan in a context where the insurance market faced many difficulties.
