Support from leaders at the top of organizations is the key to improving the ethical climate in the insurance industry, according to a new survey of industry professionals. Punishing bad actors is one of the least effective strategies, the survey found. Also, the survey uncovered a disconnect between how insurance professionals see themselves and how they think the public sees them when it comes to ethical behavior.
Others said they have seen changes come as much from inside the profession as from outside. Ethics plays a huge part in this. Others felt not much has changed because the same old temptations exist. That raises a crucial point.
What is motivating today's professionals to do something they know may be wrong? There seem to be a number of fronts: Those forces are certainly not unique to insurance.
The University of Notre Dame, on behalf of a law firm, released a survey in mid-May finding that about one in five financial services respondents feel they must engage in unethical or illegal activity to be successful. About one in 10 said they felt direct pressure to compromise ethical standards or violate the law.
Ultimately, we are most interested in how we can improve. The message from respondents to our survey was clear: Yet, the reasons they cited did not have much to do with corporate executives taking the lead on such issues.
Instead, many identified technology as a driver of more transparency, with social media bringing sunshine to shadowy areas of company operations.
Respondents also believe that ethics can align with business goals, saying that smart businesses will ultimately see that unethical employees are simply too risky for an organization.
I sincerely hope — no, believe — this practice will continue. But even if that's the primary reason, leaders would be shortsighted to think that reputation doesn't affect our bottom lines.
We are optimistic about the next 10 years as well, but we also know that behaving ethically isn't always easy. Even if we all aim to uphold the highest ethical standards, we still will face hard choices. In free ethics courses provided by The Institutes and the CPCU Society, we tell our students that ethics is not simply a choice between right and wrong.
Instead, it's often choosing between two options that both seem right at the time, like doing what's best for your family versus what's best for someone else's. We don't have to wait until we are faced with those choices.
Instead, smart leaders should recognize that unethical business practices are not only wrong but are also a risk to be managed.
They should lead by example and make it clear that honesty is absolutely a part of their culture. Managers should empower their teams to make good decisions and not encourage them to cut corners.
New recruits should receive basic ethics training, so they understand how to handle tough decisions. Awareness of ethics for only one month of the year isn't enough—it needs to be part of our daily routine.
In the end, only by changing the reality of insurance industry ethics can we hope to change perceptions about our industry.Support from leaders at the top of organizations is the key to improving the ethical climate in the insurance industry, according to a new survey of industry professionals.
Topics for Consumers within the Missouri Department of Insurance, Financial Institutions & Professional Registration. This continuing education ethics class is designed to benefit the Illinois insurance producer in three ways.
First it reminds them of their fiduciary relationship with the public by reviewing some common mistakes that producers may make with reference to selected statutes and regulations governing producer conduct.
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss..
An entity which provides insurance is known as an insurer, insurance company, insurance carrier or underwriter.A person or entity who buys insurance is known as an insured or as a policyholder. Ethical issues in the financial services industry affect everyone, because even if you don’t work in the field, you’re a consumer of the services.
That was the message of Ronald F. Duska and James A. Mitchell in their presentation at the Oct. 24, , meeting of the Business and Organizational. Ethics and The Insurance Agent Copyright © , Center for Continuing Education 5 Chapter One: Introduction to Ethics “Ethics” are a body of moral principals.