Finance Monthly April 2020 Edition

Total 18-34 35-54 55+ 47% 43% 41% 42% 45% 44% 53% 42% Americans divided over whether to trust insurance companies To what extent, if at all, do you trust insurance companies? (% of US adults by age) Trust Don’t Trust yougov.com July 7-9 2017 awakening. While there are legitimate errors & omissions and honest mistakes in miscommunications between the broker and the client, these types of errors are inexcusable and look intended for personal gain especially when the broker claims to be a specialist. This type of behaviour is the hallmark of what I most despise and want to change in our industry. Competing with unethical brokers has been, at times, a frustrating disadvantage. We are essentially boxing with one arm tied behind our backs. We have to be extraordinary if we want to stay in the game. If you were the commissioner of the California Department of Insurance, what changes would you implement? Unfortunately, there’s too much “passing the buck around” or denial of responsibility when it comes to errors & omissions within the insurance industry. Too many loopholes exist for the DOI to effectively regulate which allows for these types of unethical operations to persist. There need to be stiffer penalties and more licenses suspended to create incentives for doing the right thing. Consequence and pain have been said to be an effective teacher, and I think we need more of her lessons. There’s a big “he said - she said” blame game occurring which allows the unethical broker to slither his way out of disciplinary action. The client ultimately suffers in the end while the broker moves on to the next vulnerable client making more money unethically. It’s the same record on replay. Granted, the DOI already threatens many disciplinary actions; still, however, these unethical brokers always seem to stay in business. This strongly tarnishes the trust of the consumer in the insurance provider. Among other small steps, I might at the least mandate a requirement for consultation on significant aspects of the insurance product and have the client confirm or opt-out by signature similar of that to a pick-up of medication at a local pharmacy. In this way, more careful conversations are taking place in lieu of quick conversations on price, sale, bind- and, on to the next quick buck! Either way, when all is said and done, ethical behaviour boils down to the personal, silent choices we make in our hearts for which no governing agent can control. It’s up to you, my friends. The choice is yours. Go do the right thing and remember that ethical insurance is not a myth. To everyone who has taken the time to read this article, thank you for listening and I hope you will join us in choosing to live as ethical individuals both in business and in life. The rewards are worth it, we promise. 17 www.finance-monthly.com FRONT COVER FEATURE - ETHICAL INSURANCE