Ethics is its Own Reward

This summer, I participated in a webinar on ethics, offered by PIA and taught by Steve Lyon. Steve is the cream of the crop when it comes to teaching continuing education courses for our industry. I always encourage those who want something more than just credit from their professional education to take PIA’s classes—but especially when Steve’s teaching.

This webinar was among the most rewarding classes I’ve ever taken. Steve crammed so much material into the three-hour session that I easily could have filled a pad with notes, and I wish I had. It was brimming with the structured information of the curriculum, but also keen personal insights. One moment from the beginning of the class stands out. Steve noted that direct writers seem to rely heavily on two tactics in their advertising these days: promises of savings (We can save you 15 percent!) and humor.

Humor. Humor is fine; humor is great. But, can we all agree that insurance is not a funny business? It’s serious. If someone is in an accident, hurt or worse, that is no joke. If someone is underinsured—or perhaps not covered at all—because of some direct writer’s misleading filed form, it is a serious matter. We deal in lives, not punchlines.

But, I digress.

Steve’s class had me thinking. Every agent should take a course in ethics. Yes, of course, it keeps us abreast of changes in regulations. Sure, it’s great to have hidden pitfalls revealed and illustrated with real-world examples. But, it also reminds us of our strongest appeal to customers: For independent agents, it’s in our best interest to do right by our clients. Honestly, you could accurately call any ethics course “How to win back your personal- and auto-lines policies.”

Let me give you an example from a parallel industry. My wife’s car came off lease some time ago and a local auto mechanic has long taken care of it. An itch to compare hit me, and thought I would have a nearby dealer check it out. After reading two-year-old magazines for nearly a half-hour, a “special advisor” brought me to his office and asked what brought me in today.

“I’m looking for an oil change and to have the car looked over, especially the brakes.” He glanced over my paperwork and gave me an estimate for $700.

“So, that includes the brakes?” I asked. No, that’s a separate charge.

Even as my eyebrows shot up, he already was offering to reduce the cost a few hundred dollars by “blowing out the pipes” or some such nonsense. I didn’t go there to bargain. I just wanted a fair deal. My auto mechanic got the job done—including brakes—for $350, and I know he did a thorough job.

This reminds me of the direct writer experience, only in reverse. Where the dealership piled on charges, trying to take advantage of my relative ignorance, direct writers pull essential coverages away from unsuspecting prospects, trading on a naïve focus on price to make the sale. This dealer sent me back to my local auto mechanic, and I feel more comfortable with him than ever. Once people understand the value of an independent agent—of a trusted partner—they’ll be back. Eager, honest service is an advantage in almost every industry, but especially in ours. Make sure you are using it to build your book.

Speaking of ethics, at the recent board dinner for the Professional Insurance Agents of New York State, PIA announced it was honoring Robert Shapiro of Global Facilities with its Distinguished Insurance Service award. I will be writing about the new administration in a subsequent article, but since I’m writing now on ethics, I have to make note of how fitting this award is. Bob is a long-time member and volunteer with PIA (he joined in 1984), a passionate advocate for our profession, and a model of ethical behavior. He is an active past president of the Professional Insurance Wholesalers Association and is a member of its Legislative and Nominations Committees as well as their Premium Finance Task Force. Shapiro also is a member of PIWA’s Abe Snyder Memorial Committee. Bob also is a founding board member, past chairman, and current board member of the Excess Lines Association of New York. PIANY’s distinguished service award recognizes an individual who has a history of significant contributions to and support for the insurance community. Bob certainly fits that bill, but he also is a model of ethical behavior, a good friend and a great advocate and friend of PIA. He’s a great friend to many of us in the industry, including me. He deserves our congratulations!