As it is every year, March is Ethics Awareness Month for the insurance industry. Click here for my March 2017 article on this, though the poll I cite does not appear to have been updated for recent public opinion about the insurance industry. The CPCU Society usually leads the way on this and you can get more information here. I wrote about the CPCU code of ethics in an article I called “The 7 Habits of Insurance Professionals.”
Those that view insurance as a career rather than a job probably think of themselves as professionals. As to what specifically constitutes a “professional,” here are some criteria from Ron Horn in an old CPCU text:
7 CHARACTERISTICS OF A PROFESSION
- Commitment to high ethical standards
- Prevailing attitude of altruism
- Mandatory educational preparation
- Mandatory continuing education
- Formal association or society available
- Independence to make decisions
- Public recognition as a profession
Source: “On Professions, Professionals, and Professional Ethics” by Ronald C. Horn
Based on these criteria, someone CAN be a “professional” in the insurance industry. The biggest stumbling block might be #7 above. Does the typical consumer view, for example, the typical insurance agent as a “professional” akin to their perception of a doctor, attorney, accountant, or perhaps clergy member? The answer is almost certainly a resounding “No”…until their insurance claim is denied. At that time, the plaintiff will almost assuredly try to convince a judge and/or jury that the agent owed a higher standard of care as a professional in his or her field.
So, how do we begin the process of changing this unprofessional view of our industry, aside from voicing our displeasure with the incessant price-focused shilling that passes for advertising that dominates the media?
Note: The above was largely excerpted from my upcoming book “When Words Collide: Resolving Insurance Coverage and Claims Disputes.”
Bill Wilson
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This article is typical industry propaganda that belongs alongside the tooth fairy, the easter bunny and a government agency that is from Washington and here to help.
The list of characteristics of a professional apply outside a profession or a professional. They in no way identify a professional. Insurance is a trade not a profession. We are not doctors, lawyers or accountants and no amount of lying and misrepresentation will change this As a trade you are a practitioner. I find very few pratitioners that are both competent and practice character. There are a few but the system does not support the creation of more.
https://www.psc.gov.au/what-is-a-profession
What is a profession?
The word “profession” means different things to different people. But at its core, it’s meant to be an indicator of trust and expertise.
Traditionally, a “professional” was someone who derived their income from their expertise or specific talents, as opposed to a hobbyist or amateur. This still carries through to fields today, such as sport.
But given today’s fast-changing environment of knowledge and expertise, it’s now generally understood that simply deriving an income from a particular task might make you an “expert” or “good at your job” – but if you’re a “professional”, this has a broader meaning.
There’s a long history of attempts to clarify this meaning, and to define the functions of professions. These attempts typically centralise around some sort of moral or ethical foundation within the practice of a specific and usually established expertise.
This section is designed to give you an insight into some of the historic and academic ways of defining professions, as well as some regulatory perspectives as to how a group can ultimately become a profession.
Key definitions
A profession is a disciplined group of individuals who adhere to ethical standards. This group positions itself as possessing special knowledge and skills in a widely recognised body of learning derived from research, education and training at a high level, and is recognised by the public as such. A profession is also prepared to apply this knowledge and exercise these skills in the interest of others1.
A professional is a member of a profession. Professionals are governed by codes of ethics, and profess commitment to competence, integrity and morality, altruism, and the promotion of the public good within their expert domain. Professionals are accountable to those served and to society2.
Professionalism comprises the personally held beliefs about one’s own conduct as a professional. It’s often linked to the upholding of the principles, laws, ethics and conventions of a profession as a way of practice.
Professionalisation is the pattern of how a profession develops as well as the process of becoming a profession.
There is no specialaized knowledge in the insurance industry. More like plumbing or wiring. There is no expert domian. In fact tehre are very few peopel in the industry that can even define the word insurance corretcly or state truthfully who an agent and broker represent.
Ethics and standards don not come from an industry or a profession. If they do then they are nothing but man doing what is right in collective man’s sight. That is a realtive standard not an absolute one and that is why every profession’s attempts at ethics fails miserably over time. Trades are no exception either and insurance is a badly practiced trade nothing more. So stop the misrepresentation if you want to lower your E and O exposure.