The Managing Director of Vanguard Life, George Kojo Addison, has stated that, among the factors contributing to the poor patronage of insurance in the country, mistrust and the challenging economic environment are the two key factors.
He made these remarks when responding to questions on why the growth rate of insurance in the country is low during an engagement with the media after the launch of the company’s two new insurance products. “A lot of Ghanaians are not willing to take insurance because of mistrust. Mistrust comes in because we are dealing with a lot of products that are not seen by the customers, but the benefits are there,” he said.
He further stated that insurance thrives when the economy is booming, therefore, the state of the economy where individuals and businesses are facing major challenges has also affected the growth of insurance subscribers in the country. Advising the industry members on how to improve the situation and enhance growth of subscribers in sector, he said players should increase education and sensitisation efforts for the public to be aware of the benefits of buying insurance policies.
About the launch
Vanguard Life launched two innovative and capital friendly products in response to the needs of their customers.
The two products are the Old Students Association (OSA) Welfare Plan, which is an existing off-line informal sector group life product, repackaged and digitally enabled as OSA Welfare; and Family Wealth Provider, also a mass product which focuses on providing attractive cover and competitive premiums.
According to Mr. Addison, the OSA Welfare is basically designed for old students to do away with the frequent contribution to support bereaved members of the association. He said members will benefit for a whole year whiles they make one-time payment.
In addition, he stated, the Family Wealth Provider also gives benefits for the policy holder, his spouse and two biological children, ensuring the package benefits the entire family. Another benefit of the FWP is that it provides optional savings for the policy holder and also has competitive returns on the fund.
Mr. Addison assured those robust systems and infrastructure have been put in place by management to ensure the two newly introduced products deliver and satisfies the customer, adding, the introduction of OSA and FWP is an indication of better and greater things to come.
Commenting on what products his outfits have churned to meet changing needs of customers in the era of COVID-19 pandemic, he said Vanguard Life has also responded by developing COVID-19 compliant products and services to ensure the safety and protection of its customers.