Be ethical, insurers told

current dispensation when the industry was on a rebound in  the wake of economic stability.
“As managers you can act in the manner that you want but I can assure you that this will only last for a season. For us in the insurance industry it is paramount to be ethical to guarantee goodwill in our industry,” he said.
Mr Chapereka said the insurance industry should guard against falling into the same trap as some banking institutions that were affected by unethical conduct on the part of their directors.
He said the events at Interfin and Renaissance Merchant Bank should not be allowed to occur in the insurance industry as this will take it back to the pre-2008 era.
“We need to manage companies as if they are our own. We also need to manage our own affairs properly. I believe that a manager who is in perpetual debt should not be allowed to lead a company; they should be fired. How can they manage a company when they cannot manage their own affairs?” he said.
In order to ensure ethical conduct in the industry, Mr Chapereka said there was need for managers to set the tone.
“If managers behave as if the only thing that matters is profit, employees are likely to act in the same manner. As leaders we are responsible for setting standards for what is and is not acceptable employee behaviour. It’s vital for managers us to play an active role in creating a working environment where employees are encouraged and rewarded for acting in an ethical manner.
“Business ethics is fundamental for the success of any business and any management team. Ignoring it is tantamount to committing suicide.  It’s a question of time, the issues will catch up with you,” he said.
Another speaker, Dr Victor Gumbo — who spoke on the implementation of Solvency II in the insurance sector — urged the industry to embrace the financial accounting system to better their operations.
Solvency II is an accounting system based on three pillars that are quantitative requirements that deal with financial resources and capital requirements for the sector, qualitative requirements that deal with corporate governance and risk factors and disclosure that is public disclosure and compilation of annual reports.
The system which is the equivalent of  Basel II for the banking sector is meant to help address issues of risk, raising sufficient capital to meet regulatory approval and address corporate governance issues as well as disclosing their operation to stakeholders.
Dr Gumbo said firms should embrace Solvency II, not as a regulatory burden but as an opportunity to strengthen their organisation through best practices in a fast changing world.
“It will level the playing field by ensuring consistent regulation in all territories and within a country. It should also improve the solvency of the industry and that means better protection for consumers.  It promises benefits of better capital management by aligning solvency with the risk profile of each firm.
“The winners will be those companies who take the opportunity to really embed the principles into their corporate culture and ensure it becomes a better way of doing business,” he said.
Fraud expert Mr Proctor Nyemba who spoke on insurance fraud said that it was critical for insurance firms to be diligent on detecting insurance fraud as it was now on the increase.
He said that it was critical for the companies to invest in training of staff at all levels to prevent fraud.
“It is cheaper to prevent fraud than to hire people to detect fraud when it happens,” he said.
The main aim of the summer school is to provide a platform for training and grooming future leaders in the insurance industry.
Particular emphasis on this year’s school is on grooming leaders who will make things happen, restore the glory of the industry and take the industry to lofty heights from the foundations that the current leaders are laying.
Delegates attending the summer school comprise of supervisors, junior and middle managers.