While researching Nevada insurance law and obligations, I came across a course entitled Ethical Issues in Insurance . Two points in the course, which seem very relevant to most claims situations, involved the trust that policyholders place in agents and then the trust they place in companies in the hope that they will receive full payment when a claim is presented.
Regarding the confidence that occurs at the point of sale of the policy, the article noted:
Although modern insurance contracts are easy to read, it does not follow that they are easy to understand. Few insured people read their insurance policies; those who do, rarely understand what they are reading. Most people buy their coverage based on trust.
The second point quoted a leader in the insurance industry:
Much is made of the bad image of the insurance industry. Consumers do not normally think of insurance in a positive light. In his analysis of the insurance industry, Lawrence G. Brandon, CPCU, identified five shortcomings in the industry that led to such a bad reputation.
• Lack of leadership means that insurance organizations can be driven by shareholder expectations rather than long-term. goal.
• Poor communication about how the industry and its products are designed to work leads to misunderstandings.
• Lack of customer focus often leads to an adversarial position while the customer needs the product the most.  • Burdensome bureaucracies create a negative image.
• Unhealthy competition destroys the price integrity of the insurance product.
The course reminded me of a couple of previous posts I wrote about the insurance industry's ethics: Professionalism and Ethics for a Real Estate Insurance Adjuster and Insurance and Insurance Claims Involve Public Trust .
The irony came over the course of w hile examining the duties of an agent who simply failed to do something close to what was promised, and a very underpaid and delayed claim from a major personal insurance company, which should have much better claims processes focused on to meet what it knows it should
Thought for the day
We will ensure that employees continue to have unmatched product knowledge and maintain their commitment to customer service and respect for their colleagues and for the communities in which they work and live.