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Ethical Dilemma Among Insurance Brokers in Rockford, IL

by | Jan 31, 2020 | Blog, Insurance Brokers in Rockford IL

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 brokers in Rockford IL see themselves and how they think the public sees them when it comes to ethical behavior.

The survey by the Institutes and CPCU Society asked 3,000 members of their online community which factor would be most important in ensuring ethical behavior. Forty (40) percent of respondents said demonstrating leadership support would have the greatest impact, while 38 percent said integrating ethics into company goals would be best. Only 8 percent said punishment for unethical behavior would have the greatest impact.

At the same time, while more than 90 percent of respondents said that they believe insurance professionals are already largely ethical, 55 percent said they believe the public views their industry as largely unethical.

More than 80 percent of respondents said the key to improving public perceptions of ethics within the insurance industry is enhancing the public’s understanding of how insurance works.

At The Top

Leadership on ethics is a concern for all industries. In 2012, survey results were published which found a growing number of chief financial executives at leading firms (not only insurance) around the world see ethics as an obstacle to be circumvented. Of the 400 chief financial officers quizzed, 15 percent admitted they would be willing to pay bribes to secure business and 4 percent said they would be willing to misstate financial performance.

The 2014 Risk Management Benchmarking Survey conducted revealed that insurance brokers in Rockford, IL at corporations are positioned to affect leadership as they are closer than ever to top decision-makers, with 84 percent of them reporting to the board or top management. And they are involved in discussions on ethics, compliance and legal issues, and internal audits and controls, according to the survey.

Day-to-Day Jobs

The Institutes/CPCU organizations polled 130,000 insurance and risk management members of The Institutes Community during the second week of March to mark the 25th anniversary of Ethics Awareness Month.

Of those respondents who said the industry is acting more ethically than 10 years ago, improving education, transparency through technology, and increased regulatory and media scrutiny were common reasons cited by respondents. Other insurance brokers in Rockford, IL were more ambivalent about the role technology has played in ethics.

With use of today’s technology, the underwriting side of insurance is definitely more transparent. With the impact of social media on everyday life, being ethical is the only way to go. Several institutes offer the CPCU designation program; associate designation programs in claims, risk management, underwriting and reinsurance; and continuing education courses.

Human Resources & Benefits Consultant in Rockford, IL

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