Underwriter identifies causes of unethical vices in insurance


From left: Immediate Past President, Chartered Insurance Institute of Nigeria(CIIN), Past Mr. Bola Temowo; President, CIIN, Lady Isioma Chukwuma and Deputy President, CIIN, Mrs. Funmi Babington-Ashaye at the event Lagos.

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Chuks Udo Okonta

The Managing Director Consolidated Hallmark Insurance Plc, Eddie Efekoha, has identified greed; lack of transparency; peer pressure; societal influence; competition and inadequate monitoring/enforcement as main causes of unethical conducts in the insurance industry.

Efekoha, disclosed this at the graduation and awards ceremony organised by the Chartered Insurance Institute of Nigeria (CIIN) in Lagos, stressing that without ethics, integrity and proper conducts worthy of emulation, operators are mere paper peddlers on the streets with nice suits and shoes.

He posited that unethical practices in the industry include: rate cutting; unhealthy competition; rebates and illegal payments to intermediaries; refusal to pay claims.

Others according to him, are: claims purchasing; poor representation of clients; collusion with clients to exaggerate claim amount or claim for uninsured losses and leasing of AIIN certificates for fee.

Efekoha said bad public perception; hinders growth; career death; leading organisations to corporate graveyard and corruption of the entire system are the effects of unethical conducts.

On the way forward, he said there should be collective responsibility to determine the future of the industry through professional and ethical practices., and that operators should invest in personal education beyond what their employers provide.

He urged operators to imbibe the spirit of professionalism in the discharge of their duties and that they must constantly ask themselves everyday – “Have I acted in my line of duty as a professional today?”

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