Ethics in Today’s Changing Time

Ethics in Today’s Changing Time

Instructor: Gabrielle O’Brien

All presentation information is confidential and proprietary to the Independent Insurance Agents of WI (IIAW) and their approved course instructor.

Confidentiality Notice:

This information is confidential and proprietary to the Independent Insurance Agents of WI (IIAW) and their approved course instructor.

Any unauthorized review, use, disclosure or distribution is prohibited.


Introduce Yourself Where You Work Why are You Here? Thoughts on Ethics?


Bob has just taken a job as an account manager at an insurance agency. Shortly after beginning the job he was shocked to learn that rumors abounded regarding the behavior of some of his coworkers. Bob heard that several of his fellow employees had gone on multiple outings to expensive strip clubs which were being hosted by a key client. These parties were lavish and expensive. Some at the agency claimed that this was a part of doing business and that it was important to keep the morale of key employees high and to solidify business relationships. But Bob worried about potential ramifications.

How should Bob handle this situation?


People in the workplace are often tempted (pressured) to do things they wouldn’t ordinarily do.

If you agree with this statement, what is it about the workplace that makes us put aside our ordinary standards?

If you disagree then explain why it seems that we do?


Mike, a risk manager in a large insurance agency has had his timesheets returned to him for some “revisions.” He has been asked to increase his hours by 20%. They were justifying the “revisions” because he was an efficient and effective worker. Mike suspected that the change was due to an attempt by the agency to make up for the shortfall in revenues. If these shortfalls were not made up there would most likely be layoffs. Mike was reluctant to voice his concerns and did not want to be perceived as not being part of the team.


You are working in the claims department of an insurance agency. A meeting is called to discuss ways of expanding your department services. You spend several evenings developing a coherent plan. When the meeting is held your plan becomes the focus of attention, mainly because no one else has prepared as carefully as you. Your plan is written up and adopted with no mention of your role in its development.

Discuss the idea of “Credit where credit is due.”


Who Do We Expect Ethical Conduct From:

Insured's

Producers

Insurance Companies


How do we determine who is the “best or most ethical.”

Best Rating Research Code of Conduct









Role Playing ExerciseMichael – Department Head

What is the slippery slope you went down? You probably did not begin your career with the intent of resigning under criminal investigation: walk us through how you got there. Was it the culture of ABC? Was it pressure? Was it greed?


Role Playing ExerciseJim O’Brien – CEO What did he do versus what should he have

done? Did he create an ethical environment? Where was the breakdown? Were there processes and procedures in

place?


Role Playing ExerciseMiddle Manager being recruited by ABC

What things would you consider before looking further into this opportunity?

How can you tell if this is an ethical company? What will help you determine if the culture is

right for you?


Role Playing ExerciseCustomers

How did this happen to you? Is there anything that could be done to

prevent this? Do you sue? Will you place your business with them in the

future?


Follow Up Questions1. What is your interpretation of the changes at

ABC Brokerage Firm?

2. Have they solved the issues surrounding contingent commissions?

3. What are the challenges ahead? Successful or not?


Basics of a Credit Default Swap

General Electric -----Bank-----CDS


Collapse of Housing Market

Scenario 1 – 100,000 loan and no down payment

Scenario 2 – 80,000 loan and 20,000 down payment


XYZ Company goes Down

Co. XYZ Goes Down – CDS Goes Down – Counterparties Goes Down – Businesses Goes Down – Total Economic Meltdown – Political Instability


Questions on XYZ1. Should the government step in and bail out

XYZ?2. What was the money given to XYZ being

used for?3. Why is the bailout good for XYZ?4. Why is the bailout good for government?





Confidentiality Notice:

This information is confidential and proprietary to the Independent Insurance Agents of WI (IIAW) and their approved course instructor.

Any unauthorized review, use, disclosure or distribution is prohibited.


Date post:	25-Feb-2016
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Ethics in Today’s Changing Time

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