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7/5/15

Insurance Industry: Ethics in the Insurance Industry rated poorly - by Marco Bendinelli

 Whether it is for legal, personal or humanitarian reasons, ethics can’t be ignored, and this is especially true for the insurance industry.

Unfortunately, the current system isn’t perfect, and newspapers are often rife with stories of people falling out with their providers for a range of issues. An annual ethics poll by Gallup, for instance, has always seen insurance companies fare poorly. In over 35 years, no more than 15 percent of the participants considered the insurance industry to have “high ethical standards.” Clearly, this is something that needs to change.

Much of the ethical issues in insurance are a case of utilitarianism and deontology. The former perspective focuses on the greater good or collective, while the latter believes in personal duties. Insurance businesses are arguably utilitarian, as they look at the larger picture.

An individual customer, on the other hand, is somewhat deontological; they consider their needs first and foremost, with no relevant interest outside their insurance policy. Many problems occur when insurance providers fail to understand these concerns, conducting practices that simply ignore personal objections.

Read more: Ethics in the Insurance Industry

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