Driving home one afternoon, I caught a breaking news story on the radio that involved a prominent politician who had admitted to a moral and ethical failure. As I thought about his situation — and how much harm his it was going to cause his constituents, friends, and family — I was contacted by a client struggling with his own ethical dilemma. His issue was minor by comparison, but it caused me to consider the topic in greater detail.
While thinking about how to approach the subject for this article, I came to the conclusion that addressing ethical questions "head on" would be the better form of valor. In many cases, the subject of ethics is something that is not given much thought. Agents and brokers tackle their day-to-day business issues under the assumption that any ethical dilemmas will work themselves out. Agents and brokers who have implemented good business practices will see this reflected in their relationships with clients. As long as no consumer enters the office armed with a legitimate complaint or changes agents to find a more responsive agency, the subject of ethics is rarely broached.
However, situations will arise in your business operations that will test your own personal code of ethics. More importantly, situations will arise that will require that you make a choice to act in support of or in opposition to the ethical standards to which you subscribe. Recognizing these dynamics is important because too often there is a chasm between what people say they believe is right and what they do in the day-to-day situations.
To their credit, the Florida Surplus Lines Association has published a document that addresses ethics, so for purposes of this article, I'll use the FSLA's web site. However, to be clear, this article is neither directed toward nor is it about any one group or person. For ethical practices to be successful in the Florida insurance market, it can't be such that one segment of the market is the only group serious about upholding a standard of professional ethics. While it's true that ethical behavior is tested in any economy and in any insurance cycle, the soft market we are experiencing now is one that is unfortunately ripe for poor choices. Pressure to write business, renew accounts, and make money will cause some to pursue profit through unethical means and measures.
Rather than print the entire segment of FSLA's Article X – Code of Ethics, I'll focus on a few key words/phrases from their site (you can read all of it by going to www.floridasurpluslinesassociation.com and choosing "By-Laws" from their document listing).
Members are required to faithfully observe and abide by the provisions of the?code of ethics. I'm sure that if you asked any member of the FSLA or any professional insurance association if they "faithfully observe and abide by" their association's code of ethics, they would say "yes." If you are doing business with them, I would hope that you would at least expect them to answer this way. But I'm guessing that many of us don't know what our association's code of ethics says. I consider myself an ethical person, but I'll admit that I had not taken a hard look at the FSLA code of ethics until recently. If you are like me in this regard, I would encourage you to find and read your association's position/wording regarding ethics. Otherwise, how can you faithfully observe and abide by a code of ethics that you don't know? If you don't think it's worded properly or completely, get involved with the association and work through them to improve it.
Members of the Association agree to maintain high professional standards of efficiency, conduct, integrity, responsibility, and service. That's a lot to tackle, so I'll focus on integrity. Merriam-Webster defines integrity in part as a "firm adherence to a code of especially moral or artistic values: Incorruptibility." It strikes me that to maintain these standards, they should already be present prior to agreeing to become a member. If that's the case, then where are such standards being taught?
In this day and age with parents and teachers being unable or in some cases unwilling to correct their children or impart ethical or moral standards, some employees are coming into the workplace without a clear understanding of concepts like proper conduct, responsibility, and integrity. While I know it's frustrating as an employer or co-worker, it's also an opportunity for business owners, managers, and co-workers to teach and model these concepts. You can also be involved with young people through Project InVest, local mentoring programs, Big Brothers/Big Sisters, and other similar volunteer opportunities in your community.
Members are to refrain from maintaining or using their membership within this Association as a means of taking unfair advantage of competitors, or for any other purpose than for which this Association is intended. I'd broaden this to include more than just your competitors, which some people call being a "tough" competitor. It's interesting how people sign confidentiality agreements, agency agreements, employment contracts, and company contracts, but when it's not convenient or comfortable any longer, they justify the choice to simply disregard those agreements. That is until someone does it to them.
Members are to regard the business of insurance as an unusual opportunity for essential services to the public, and to conduct themselves with dignity, courtesy, and the highest degree of fairness in their relations with members of the industry and the public at large. Wouldn't it be great if every service industry functioned with these standards? There's no question that we as insurance professionals have an obligation to treat our customers with the highest degree of fairness. While this has been a tough market recently — and getting tougher for wholesalers and carriers — I think retail CSRs and agents have had the most taxing jobs. They have had to deliver the news to their customers that their premiums have doubled (and now it's half what it was last year), their policies no longer cover wind, their carriers are no longer writing in the state, and so on.
I have the greatest regard for those insurance professionals who can do their jobs in the midst of such chaos and still maintain their empathy, patience, and integrity. Not enough is said about those individuals. If you're an employer with a staff like this, I would encourage you to tell and show them how much they are appreciated. Too often, we take those people for granted and our business suffers when we lose these employees to other industries. Worse, you suffer when you lose them to a competitor.
Members are to be governed by a spirit of cooperation, helpfulness, and frankness in their relationships with fellow members to the end that each shall be better equipped through such cooperative measures and exchange of ideas to better perform and function and to foster the advancement and prestige of their profession. Wow, how old fashioned: people helping others – even their competitors! We live in an age where businesses are often judged more by stock dividends and profits than by how they achieve those results and what the lasting impact is of the decisions that created those profits. Call me na?ve, but the people who comprise the business in which you work are the business, so why not function in a way that brings honor to your business and your profession?
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.