IRMI Update—Issue #132
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
March 8, 2006
In This Issue
Colleague,
If the insurance industry's tribulations during the last few years have taught
us anything, it is how quickly a brand can be tarnished as a result of the actions
of a few bad apples. Establishing ethical behavior as an ingrained part of an
organization's corporate culture is a key to avoiding lapses that can damage
its brand. I believe it also provides those companies that achieve it with a
competitive edge in the marketplace. However, this must go beyond lip service
with everyone in the organization walking the talk.
Some of the ways to accomplish this are:
- Have a code of ethics that everyone follows, from the CEO down the line.
- Regularly remind everyone—employees and customers—of the code.
- Conduct training sessions to help teach employees how to make difficult
ethical choices.
- Punish those who violate the code.
March is ethics awareness month for the insurance industry, and most CPCU
chapters as well as some other associations will be focusing on ethics awareness
at their meetings. Consider encouraging your colleagues to attend these programs
and take ethics seriously. This is also a great time to review ethics awareness
in your organization and take steps to increase it. To give you a helping hand,
we're happy to give you Ethics
Considerations for Property and Casualty Insurance Professionals.
This is a nuts-and-bolts guide to developing an ethical code and making ethical
decisions.
Do you agree with my premise that insurance organizations with a demonstrable
commitment to ethics and integrity have a competitive advantage in the marketplace?
What approaches to reinforcing ethical behavior have you seen work in your company
or perhaps in your clients' companies? [See reader
comments].
Thank you for subscribing to IRMI Update.
Have a great day.
Jack
Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI
Reduce Flood Risk—Be Careful of Enclosures—The
Federal Emergency Management Agency (FEMA) and local building officials work
hard to develop building codes that reduce the risk of flood damage. Before
enclosing nonliving areas of a building or home, a property owner should meet
with local building officials to ensure that the proposed enclosure will be
safe from flooding. Patios, garages, balconies, and other nonliving areas are
not designed to protect against flooding as much as planned living areas.
If the building or home is post-and-beam construction (commonly referenced
as on stilts), do not convert the open area underneath the living area into
additional living space without checking with local building officials. Most
likely, the area beneath the living area is open to allow water to pond up or
to flow freely under the structure. An open area converted to living space may
block the flow of water. This presents an increased risk of flooding in the
new living area, and worse, damaging the entire structure, particularly during
heavy rainstorms.
In the Florida Keys, many property owners modified areas intentionally left
open to mitigate flood damage. Unfortunately, many did not check with local
building officials who would have prevented such actions. The widespread nature
of this problem may prompt FEMA to place the community on probation, resulting
in the suspension of all coverage maintained by the community's property owners
until corrective action meets with FEMA standards.
The best advice for property owners is to be sure that proposed enclosures
or other alterations meet with local floodplain regulations.
Dan Freudenthal, President
Flood Zone Correction, Inc.
West Palm Beach, FL
Toll Free: 1-877 Flood Zone, ext. 111
www.floodzonecorrection.com
Suggest a Risk Tip. Send us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. Submit your tips. We'll
acknowledge your contribution as we did for Dan.
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you or your client. This second edition book helps you gain the expertise of
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guide. See the table of contents and order here.
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