Known as the Old Students Association welfare scheme (OSA) and the Family Wealth Provider (FWP), the OSA is designed for members of old students’ unions to create a convenient avenue for paying contributions and donations in a digitised way.

The FWP, on the other hand, is designed to adequately address the life risk needs of families.

Launch

In an interview during the launch, the Managing Director of Vanguard Life Insurance, Mr George Kojo Addison, said being part of an old student association, the complaints and stress that came with paying contributions informed the introduction of the solution to help eliminate inconveniences in the various old student associations.

He explained that in as much as they were doing business and making profit, they must also consider the safety of their customers from COVID-19, thus, the introduction of the digital channel and products to enable people to access it in the comfort of their homes.

“Insurance companies should frequently advertise their insurance policies, claims and benefits to the public and how much they pay to people to clear the mistrust people are having about insurance.

“And because they deal in intangible products, there is a high rate of mistrust and the fear of being cheated,” Mr Addison added.

Digitisation

The MD of Vanguard Life commended Ghanaian businesses for embracing technology and digitisation.

He said the COVID-19 pandemic did not unleash all the latent negative impact on them because of the robust risk management programmes put in place, and switching to their digital channels to operate.

Product features

According to the company, OSA policy requires an annual premium and a minimum of 25 members in a group to be signed on.

The FWP gives the clients immediate access to the fund after a year’s contribution.

“It’s flexible because it considers the fact that the policyholder must enjoy some benefit while he/she is alive. That makes the FWP provider unique,” Mr Addison explained.

The FWP is eligible to members and spouses between the ages of 18 and 65 years, and two biological parents not older than 75 years.

Technology investments

The Deputy Commissioner of Insurance, Mr Michael Kofi Andoh, expressed the hope that the product would help to deepen the insurance sector and impact positively on economic activities.

He commended the insurance companies in the country for making good use of technology.

“We should also take note that as much as it makes work easier and simple, it also comes with risks which need to be mitigated,” Mr Andoh advised.

He, therefore, urged the management of Vanguard Life to continue to invest in technology as well as security systems to ward off the attendant cyber risks.

Published by Graphic Corporation