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Investments Purchase Strategy Based on Ethics Student’s name: Institutional Affiliation: Introduction In the quest to obtain as many clients as possible, many insurance companies fail to explain to customers the package that its insurance policies entail. Customers rely on agents to explain to them the policies as most of them only view insurance like car insurance as an essential government rule that they need to follow. Policyholders rely on the ethical mercy of agents to guide them on which policies that fit its needs. A solid ethics program is an important element to a successful insurance company or any other business. Ethical standards ensure that the company does not exploit its clients. This paper analyses the importance of good ethical practices, the ethical challenges that insurance companies face and the reasons behind the success of other insurance companies. Some of the challenges and practices that affect many insurance organizations include hiding of information or clauses in the policy. Clauses such as increment in annual revenues or not specifying what the policy covers can mislead policyholders. Another challenge is disclosure. Some agencies fail to disclose to customers all that entails an insurance package which causes future problems when the customer finds out what they are paying for is not exactly what they want. Falsification of information whether unintentional or intentional can happen when an agent does not explain and ensure that the customer understands what the policy states. Misrepresentation of information can also lead the policyholder to make a poor choice of policy packages. Industry Discussion Allstate is the second largest
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