NIA
ETHICS AND CODE OF
CONDUCT:
THE NIGERIAN INSURANCE
INDUSTRY EXPERIENCE
THOMAS O S, NIA
CIIN PROFESSIONAL FORUM 2013
ISSUES FOR DISCUSSION
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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
WHAT IS ETHICS?
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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 ethics
Club ethics
Communal or Societal ethics
Professional ethics
The agreed behaviour or conduct of the group or
people form the standard for measuring adherence
or compliance.
Any infraction is usually penalised
WHY DISCUSS ETHICS AND CONDUCTS
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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.
TYPICAL CHARACTERISTICS OF
INSURANCE BUSINESS
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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
CAUSES OF UNETHICAL CONDUCT
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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
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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
GENERAL CORE DUTIES IN THE CODE OF
ETHICS
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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
Source : Adopted from CII London
Code of Ethics and Practice for the
Nigerian Insurance Industry
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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
CORE DUTIES IN THE NIGERIA
INSURANCE INDUSTRY CODE OF ETHICS
AND PRACTICE
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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
BENEFITS OF SUSTAINED HIGH ETHICAL
STANDARD
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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
RECOMMENDED MINIMUM ETHICAL STANDARD
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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
CONCLUSION
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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.org
tomdaveng@yahoo.co.uk
+2348036414876