ICAC joins the insurance industry in boosting ethical management
2001-11-17
The Independent Commission Against Corruption today (Saturday) calls on the insurance industry to take positive steps to embody business ethics in their corporate management and develop an honest workforce.
The ICAC's Programme Co-ordinator (Business Sector), Mrs Helen Lee Ching Po-han, told the Conference on Professional Ethics for Insurance Industry that upholding high professional standards in the industry was imperative to win customers’ confidence in the competitive world.
The conference, held at the ICAC theatre this morning, was attended by about 100 senior executives from 30 insurance companies. It was co-organised by the ICAC, the Office of The Commissioner of Insurance, the General Agents and Managers Association of H ong Kong, the Hong Kong Federation of Insurers, the Hong Kong General Insurance Agents Association Limited and the Life Underwriters Association of Hong Kong.
Officers from the ICAC's three departments –'96 Operations, Community Relations and Corruption Prevention –'96 as well as the insurance regulator had addressed the legal and ethical concerns in the insurance industry so to enhance their vigilance to corruption problems.
Mrs Lee noted that corruption reports against the insurance industry remained low in recent years, accounting for about two per cent of the total complaints concerning the private sector.
However, under keen competition and tremendous pressure to fulfill quota and secure more business in the competitive industry, insurance practitioners might be tempted to cut corners, resulting in illegalities and malpractices.
"Prevention is better than cure. Ethical corporate governance is a company's founding stone and can help guard against corruption risks," said Mrs Lee, calling upon the insurance companies to formulate codes of conduct for staff to comply with.
The Community Relations Department of the ICAC offers corruption prevention talks and assists in drafting codes of conduct for individual companies. More than 200 talks were held for insurance companies last year.
As the majority of the complaints received were allegations against insurance agents receiving bribes to make fraudulent claims, the ICAC’s Corruption Prevention Department advises that a stringent checking system should be put in place to plug corruption loopholes.
"All documentation received and submitted from agents to make claims should be carefully checked, and if in doubt, managerial staff must verify the authenticity of the content," said another speaker Mr Ng Hung-cheung, Group Head of the Department's Adviso ry Services Group (ASG).
The group provides tailor-made and confidential corruption prevention advice to private sector organisations on request.
Mr Ng advised managers to watch out for any irregularities, such as frequent claims made by one customer or handled by any one agent.
Meanwhile, the Commissioner of Insurance, Mr Benjamin Tang Kwok-bun, addressed the participants on the "Challenges Ahead and Regulatory Framework in the Insurance Industry".
Another conference will be held on December 1, 2001 to raise awareness of insurance agents in corruption prevention.
The ICAC's Programme Co-ordinator (Business Sector), Mrs Helen Lee Ching Po-han, told the Conference on Professional Ethics for Insurance Industry that upholding high professional standards in the industry was imperative to win customers’ confidence in the competitive world.
The conference, held at the ICAC theatre this morning, was attended by about 100 senior executives from 30 insurance companies. It was co-organised by the ICAC, the Office of The Commissioner of Insurance, the General Agents and Managers Association of H ong Kong, the Hong Kong Federation of Insurers, the Hong Kong General Insurance Agents Association Limited and the Life Underwriters Association of Hong Kong.
Officers from the ICAC's three departments –'96 Operations, Community Relations and Corruption Prevention –'96 as well as the insurance regulator had addressed the legal and ethical concerns in the insurance industry so to enhance their vigilance to corruption problems.
Mrs Lee noted that corruption reports against the insurance industry remained low in recent years, accounting for about two per cent of the total complaints concerning the private sector.
However, under keen competition and tremendous pressure to fulfill quota and secure more business in the competitive industry, insurance practitioners might be tempted to cut corners, resulting in illegalities and malpractices.
"Prevention is better than cure. Ethical corporate governance is a company's founding stone and can help guard against corruption risks," said Mrs Lee, calling upon the insurance companies to formulate codes of conduct for staff to comply with.
The Community Relations Department of the ICAC offers corruption prevention talks and assists in drafting codes of conduct for individual companies. More than 200 talks were held for insurance companies last year.
As the majority of the complaints received were allegations against insurance agents receiving bribes to make fraudulent claims, the ICAC’s Corruption Prevention Department advises that a stringent checking system should be put in place to plug corruption loopholes.
"All documentation received and submitted from agents to make claims should be carefully checked, and if in doubt, managerial staff must verify the authenticity of the content," said another speaker Mr Ng Hung-cheung, Group Head of the Department's Adviso ry Services Group (ASG).
The group provides tailor-made and confidential corruption prevention advice to private sector organisations on request.
Mr Ng advised managers to watch out for any irregularities, such as frequent claims made by one customer or handled by any one agent.
Meanwhile, the Commissioner of Insurance, Mr Benjamin Tang Kwok-bun, addressed the participants on the "Challenges Ahead and Regulatory Framework in the Insurance Industry".
Another conference will be held on December 1, 2001 to raise awareness of insurance agents in corruption prevention.