Ethics rules apply to insurance brokers, agents, and other professionals in the sector. However, insurance ethics issues might occasionally occur, and it can take time to identify the proper response to moral problems.

In the insurance and risk management sectors, March is Ethics Awareness Month. This month, spend some time reading up on ethics and thinking about how you uphold these principles at work.

Questions and Answers about Insurance Ethics for Brokers and Agents

As they run their businesses and interact with customers, agents and brokers frequently confront ethical dilemmas in the insurance industry. The optimal course of action for an ethical dilemma occasionally involves pausing to reflect and weigh your options.

The following are some typical insurance ethics queries and responses:

How can I offer guidance in an ethical manner?

Every day, insurance brokers and agents provide their client’s advice. Knowing your products and services inside and out is one method to ensure you are doing it ethically. Understanding the advantages of one type of coverage over another is necessary if you want to suggest it to a client.

How can I safeguard myself from moral dilemmas?

Spend money on ethics-related continuing education for insurance brokers and agents. Additionally, make sure your E&O coverage is adequate for your company. If you haven’t updated your coverage in a while and your exposures have increased, you might need to raise your limits.

What steps should I take if I see a fraud warning sign?

Red flags are warnings to look into something more. If you suspect a new client or think there is something fishy about an insurance application, you should dig into it. Ignoring warning signs may result in a false claim or insurance policy.

How should a conflict of interest be handled?

There are numerous methods to resolve a conflict of interest with a potential client who is interested in your services. If you have a manager or leader who can offer you advice, speak with them first. Transfer the prospective client to a different agent or broker at your firm and decline to examine their information. Or, to avoid the impression of a conflict, direct the possible client to a colleague at a separate company.

More Resources to Address Insurance Ethics Issues

The best part about working in this field is that you never have to go it alone. You can expand your expertise and get solutions to your ethical queries by utilizing a variety of excellent resources.

Attend a refresher course on ethics.

Ethics courses are always available for CE credit. Enroll in one annually or even more frequently to keep your skills current. Every professional should take refresher courses to help them refocus and approach ethical dilemmas differently. You can sometimes choose better by learning fresh knowledge through education.

Talk with your mentor or another agent.

Sometimes just talking through challenges and insurance ethics questions with other professionals helps. Your mentor, manager, or colleague has probably been there before and can point out new perspectives to consider. If you don’t have a mentor, finding one can help you develop personally and professionally.

Observe the standards of conduct for your position.

You might already be familiar with their code of ethics if you possess a professional credential like a CPCU or CIC. To reinforce ethical behavior, read over any codes of ethics and policies you have from positions you hold. Take advantage of this free guidance by contacting the ethics board or committee for your professional designation if one exists.