ETHICS AND CODE OF CONDUCT:

THE NIGERIAN INSURANCE INDUSTRY

EXPERIENCE

CIIN PROFESSIONAL FORUM 2013THOMAS O S, NIA

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ISSUES FOR DISCUSSION What is ethics? Why discuss ethics and conducts? Typical Characteristics of insurance business Causes of unethical conduct General core duties in the code of ethics Code of ethics and practice for the Nigerian insurance

industry Core duties in the Nigeria insurance industry code of

ethics and practice Benefits of sustained high ethical standard Recommended minimum ethical standard

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Ethics relate to a way of life, morals or principles generally agreed or adopted by a group or people.

With the above description we often hear of Religious ethicsClub ethicsCommunal or Societal ethicsProfessional ethics

The agreed behaviour or conduct of the group or people form the standard for measuring adherence or compliance.

Any infraction is usually penalised

WHAT IS ETHICS? NIA

WHY DISCUSS ETHICS AND CONDUCTS

Ethics set the standards for excellence in practice It is the moral control that holds us steady to our

course. Ethics are important to us as individuals because

they shape our identities. Ethics define how we stand in relation to others and

how we would like others to stand in relation to ourselves

Ethics affect everyone including consumers of our services.

There is the need for public confidence.

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Insurance is a means of financial intermediation

Its operations involve exchange of things of unequal value

The article traded is a promise Assets are held in trust The supply chain involves people of various

interests which at times could be conflicting

TYPICAL CHARACTERISTICS OF INSURANCE BUSINESS NI

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Lack of adequate knowledge of standard practice Lack of established corporate culture Inadequate mentoring Unguided Competition Poor staff recruitment procedures Poor reward system Lack of necessary human capital

development programmes Non availability of procedure manuals Accommodation of unacceptable life styles

CAUSES OF UNETHICAL CONDUCT

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Greed and pursuit of personal gains Inadequate enforcement of established rules Inadequate punishment for offenders Value system, societal influences and Peer pressure

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GENERAL CORE DUTIES IN THE CODE OF ETHICS

You must comply with your profession’s code and all relevant laws and regulations

You must act with the highest ethical standards and integrity

You must act in the best interests of each client You must provide a high standard of service You must treat people fairly

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Source : Adopted from CII London

Code of Ethics and Practice for the Nigerian Insurance Industry

The code sets out standard of behaviour that its members are expected to uphold

It is meant to apply to all insurance companies and other insurance practitioners in Nigeria

It is recognized in S.79 of the Insurance Act 2003 and can be enforced by the National Insurance Commission

The Chartered Insurance Institute of Nigeria is the custodian of the law

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CORE DUTIES IN THE NIGERIA INSURANCE INDUSTRY CODE OF ETHICS

AND PRACTICE

Adherence to the Code Utmost good faith should be the dominant

principle regulating the conduct of all insurance practitioners and companies

Adherence to the general laws of the land Must ensure business is conducted on sound

insurance principles Must always be transparent with highest ethical

standard and integrity Must act in the best interest of each client

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BENEFITS OF SUSTAINED HIGH ETHICAL STANDARD

Promotes high level productivity and profitability Enhances Industry Reputation Promote quality service delivery standard Reduces the corporate risk exposure Enhances the industry’s influence on government

policies The sector will become more attractive to investors Increases the impact of the industry on the

nation’s economy

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RECOMMENDED MINIMUM ETHICAL STANDARD

Place public interest above self interests Seek knowledge, skill and competence Obey all laws Be diligent in performing assigned duties Promote professional standards Promote whistle blowing in the industry Maintain honourable relationships Improve public understanding of insurance Each company to establish or reestablish well defined and communicated corporate culture Honor the integrity of the professional qualification

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The benefits of the Nigerian economy will only serve

the Insurance sector and enhance its ability to

realize the full potential when discipline and high

ethical standard is given a priority in its operations.

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THANK YOU AND GOD BLESS

O-thomas@nigeriainsurer.orgtomdaveng@yahoo.co.uk

+2348036414876

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