Ethical Insurance Advice & When Advisors Just Have to Say No to Easy Money

Ethical Insurance Advice & When Advisors Just Have to Say No to Easy Money

When it comes to advising our clients on life insurance policies, we do it a little differently than other brokers. This isn’t some sort of hollow promise, but we just looked back on several life insurance transactions, and it is a well-documented, distinctive approach at Petra Insurance Brokers

Recently, one of our long-standing clients came to us asking for a new life insurance plan and of course we obliged. We did our standard due diligence on the client, received all the pertinent information that we needed, and proceeded to get quotes from several insurance providers. 

After reverting back to our client with all their options, one of them particularly stood out to the client, and they wanted to purchase it. After further studying the plan, however, we noticed that while it may be profitable for us, it may not be in the client’s best interest.

We could have easily said yes to the client and processed the deal, but here is why we didn’t:

1- Relationships Over Short-term Profit 

We operate by a strict code of ethics and values, not for the moral high ground, but it just makes business sense. As an insurance broker and advisor, our bread and butter are long-term relationships with clients and building trust in the market. This is why we have to invest in the relationship aspect with our clients, and that may mean putting their interests above profits. This will pay returns in the form of a more reliable, trustworthy brand, more referrals, and greater client satisfaction. 

2- Building Confidence in Our Advice 

Being an expert doesn’t just mean we have deep knowledge; it also comes with solid credibility and having the confidence to have a debate with our client. The foundations of trust in the insurance industry is reliable advice your clients can trust, and this means having a healthy debate, even if it may be uncomfortable to have, especially since it has to do with money. Our clients will appreciate and respect us more when we push back on specific policies instead of just letting them buy into a plan that may not truly benefit them in the future. 

Insurance Ethics & Setting an Industry Standard

We have to face reality, the insurance industry doesn’t have the highest perception for a myriad for reasons, some rightly earned, and others unfairly. However, when all insurance professionals uphold the highest ethical standards, it reflects on the entire industry and helps put the entire profession in a better light. This is one of the most critical steps to gaining trust from clients, regulators, and the entire business community. 

Sometimes we may advise a client against a policy, but they decide they want it anyway because they can save some money on it. At that point, we can say that we did our best to steer them into a policy that will protect them adequately. This is where having ethics and a clear conscious come in. There is a reason we say ‘no’, and we want our clients to understand why we say ‘no’. 

Want someone to look over your current policy and give you some expert advice without an ulterior motive? You can call us at 800-PETRA or drop us a line here. You can also reach us on Facebook, Instagram, Twitter, and LinkedIn.

Ethical Insurance Advice & When Advisors Just Have to Say No to Easy Money


Managing Partner

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