Quality Insurance Company has launched a comprehensive motor insurance policy targeting ‘Baby Boomers’ with the promise of providing protection for their vehicles as well as additional health and social benefits.
Baby Boomers – persons from the generation born between 1946 and 1966 – according to QIC are the target audience because they are ‘better drivers’, are health and safety-conscious and form the demographic with the highest disposable income in the country.
Speaking during the launch at QIC head office in Accra, its Managing Director Francis Kobena Addison said the product redefines the term ‘comprehensive’; as it not only caters to the typical motor-related insurance mishaps but also brings other non-insurance benefits at the most competitive price point.
“Despite having the highest disposable income in the country, we know that customers are generally price-sensitive; so we have priced this product in a very competitive manner. What we are saying is that this policy will not cost them more than other motor insurance products on the market, irrespective of all the extra benefits,” he said.
Touching on the target group, Mr. Addision said, “Baby-boomers are at the peak or twilight of their careers. They hold a strong reputation for being diligent, hard workers who have saved and spent wisely – and manage about 85 percent of the workforce in Ghana. Our studies during the product development stage showed that the baby-boomer generation controls about 70 percent of all disposable income in Ghana”.
He added that the product, which is being piloted, is being well-received and forms part of the company’s strategy for the upcoming year.
On his part, Insurance Commissioner Dr. Justice Ofori lauded QIC for its innovation and the introduction of a unique product in the face of growing consumer apathy toward insurance offerings due to the lack of differentiation.
This, he said, has driven many insurers to compete solely on the basis of pricing – which has had a negative bearing on the profitability, ability to pay claims promptly and, consequently, the reputation of many firms. “As we all know, insurance is the delivery of a promise in the future. The growth of an insurance company is therefore hinged on the trust and confidence of its clients. To sustain this growth, the insurers must endeavour to meet the risk-needs of clients through innovative ways,” he added.
He pledged the regulator’s support to aid companies innovate within the prevailing regulator-framework.
Also, First Vice President of the Ghana Insurance Association, Andrew Fiifi Simpson, echoing thoughts earlier expressed said key characteristics of the target audience – goal-centricity, resourcefulness and, most importantly, the value they place on relationships – must be harnessed if the product is to gain wide adoption.
“It is my expectation that the Golden Age Comprehensive policy will put relationship-building at the core of its offering. In the current competitive insurance environment, relationships become an important differentiator and competitive advantage.”