ETHICS AND CODE OF CONDUCT: THE NIGERIAN INSURANCE INDUSTRY experience

1. NIA ETHICS AND CODE OF CONDUCT: THE NIGERIAN INSURANCE INDUSTRY experience CIIN PROFESSIONAL FORUM 2013 THOMAS O S, NIA

2. ISSUES FOR DISCUSSION NIA • 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

3. WHAT IS ETHICS? NIA • 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

4. WHY DISCUSS ETHICS AND CONDUCTS NIA • 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.

5. TYPICAL CHARACTERISTICS OF INSURANCE BUSINESS NIA • 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

6. CAUSES OF UNETHICAL CONDUCT NIA • 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

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

8. GENERAL CORE DUTIES IN THE CODE OF ETHICS NIA • 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

9. Code of Ethics and Practice for the Nigerian Insurance Industry NIA • 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

10. CORE DUTIES IN THE NIGERIA INSURANCE INDUSTRY CODE OF ETHICS AND PRACTICE NIA • 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

11. BENEFITS OF SUSTAINED HIGH ETHICAL STANDARD NIA • 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

12. RECOMMENDED MINIMUM ETHICAL STANDARD NIA • 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

13. NIA CONCLUSION 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.

14. NIA THANK YOU AND GOD BLESS O-thomas@nigeriainsurer.org tomdaveng@yahoo.co.uk +2348036414876