Ethical Issues in the Insurance Industry

1326 WordsFeb 5, 20126 Pages
Ethical Issues in the Insurance Industry Jeff Bolling Columbia College Abstract Ethical behavior is crucial to preserving not only the trust on which insurance transactions are based, but also the public’s trust in the insurance industry as a whole. Sometimes the push to act unethically comes from the consumer. How many consumers expect their insurance agents to falsify their applications or claims? You like your agent, he or she likes you, they really want to help you out, that’s just another conflicting loyalty. Over the years many have experienced unethical behavior by insurance agents. I have had them give their sales pitch to me and my family just to find out later that the product they sold us was completely wrong for…show more content…
In an effort to gather information regarding the key ethical issues encountered in the industry over time, a survey was conducted in 2010. In each survey, participants were presented with 32 ethical issues and were asked to rate each issue on a 5-point scale where 5 meant it is a major problem today in the property and casualty/life insurance industry, and 1 meant that it is not a problem in the industry today. Twenty-eight of the issues reflected ethical problems facing businesses and their employees in general, whereas the other four were ethical issues of special relevance to professionals. Issue means were calculated for each issue in each study and the issues in each study were ranked according to the relative size of their means as compared with those of the other issues in that study. Analysis of data from recent surveys indicated that in 2003, the extent to which most of the 32 issues studied were perceived as presenting ethical problems to those working in the life insurance industry had diminished somewhat from the troubled ethical environment during the first half of the 1990s. However, the key ethical issues encountered in the life insurance business changed little from 1990 to 2003. Eight of the 10 issues perceived as presenting the greatest ethical problems for the industry were the same in all three life insurance studies, and
Open Document