Ethical Sales Behaviour in Insurance Business-A Study in Indian Context

Abstract

The Business of Business is Business. This famous quote gives rise to a long debated controversy on the responsibilities of Business towards the eco-system in which it exists. One of the many responsibilities that is expected from a Business includes the most important one-‘Ethics’. The importance of Ethics in a Business can never be exaggerated as it works as lubricant in the organisational machinery ensuring smooth and long uninterrupted running. This become all the more applicable in case of Financial Industry, including Insurance. The importance of Ethics escalates in Financial Industry due to its very nature of business, featured with products having complexity, intangibility, deferred maturity and information asymmetry. The Insurance Business is mostly carried out by field level salesman known as Insurance Advisors who are duly authorised by the Insurer and IRDA to represent and conduct the sale. And hence the Insurance Agents shoulder on the responsibility to carry out activities in a manner so as to have a positive impression on the Customer community not only about himself but of the Insurer as well.