Compliance, Law and Ethics for the Insurance Industry

Introduction

The course is a part of insurance broker’s authorization, but also applies to employees in the insurance industry in general. The course aims to give an overall insight relied to compliance, law and ethics in insurance industry.

Course content

The course consists of three independent topics with underlying themes: Compliance, Law and ethics

Compliance

The scheme for the subject of compliance must be seen in the context of the subject of ethics. Ethics and compliance with laws and regulations (especially regulatory laws and regulations) are high on the agenda of most companies. At the same time there have been several cases of sales of insurance products that are not suitable for the policyholder. This is especially true for certain types of combined products (pension / financial).

It is the responsibility of the board and management to ensure compliance with laws and regulations, and that the business is conducted in a sound and ethical manner. However, everyone working with insurance must understand and deal with ethical dilemmas and relevant regulations. However, the issue of a company's compliance with laws and regulations is also about facilitating a culture of leadership and organization that takes such issues seriously. The course will therefore also focus on how to organize the actual compliance function in the business. The teaching will be based on suitable cases that can form basis for discussion.

The following issues are highlighted:

• What is compliance and how does the compliance process work in insurance?
• What is the responsibility of the management and the individual employee when it comes to compliance with laws, regulations and internal policies?
• What are the most important regulations and issues that employees and managers must deal with in connection with sales and customer management in insurance?

• Regulations related to product packaging (PRIIPs), distribution of insurance (The Insurance Mediation Act), handling of personal protection/GDPR (The Personal Data Act) and handling of money laundering and terrorist financing (The Money Laundering Act). Challenges within these areas are great for the insurance industry.

                    - We show how these regulations affect the different parts of the sales and customer follow-up processes.

Law

• The Insurance Mediation Act and provisions of law, including broker authority. The Insurance Mediation Act provides the framework for insurance brokers, and the law is closely related to both compliance and ethical issues, as well as the other legal subjects to be taught.
• Insurance Policy Act. Basic for all players in the insurance industry.
• The provisions of the Criminal Code on corruption.
• General contract law. The course is a basic pillar for understanding the Insurance Mediation Act and the activities of insurance brokers.
• General right to compensation and contract liability. The course is fundamental to all players in the insurance industry, and it covers compensation in and out of contract.
• Public Procurement. Public agencies will often be bound by the regulations on public procurement when they enter into all types of insurance contracts. The public sector is a major buyer of insurance services, and the regulations regarding public procurement are therefore important for the person who is to conduct insurance brokerage and for the insurance companies.
• The course is designed as a combination of module-based lectures and blended learning.

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  Ethics

• The ethical guidelines - good brokering practice for insurance brokers - are central to the course (https://www.forsikringsmeglerne.no/god-meglerskikk/ethikk/). Selected ethical guidelines are put in the context of theory from the syllabus "Ethics and Corporate Social Responsibility".
• In connection with the above, typical industry ethical dilemmas are raised and discussed.