A Nebraska agent responded by questioning an ethical duty to recruit, but added: “Ethics would apply to the process of hire, the fairness of pay and the ethical treatment of employees or producers. The decision to recruit is a perpetuation choice, albeit one should recruit ethically.”

An Illinois producer also questioned any ethical duties to actively recruit new blood, but said ethics are a concern once people are hired. “As an agent, it is good business to bring in young people. I do think it is an ethical responsibility to teach, train and compensate new, young employees by surrounding them with the highest ethical standards in your agency or company.”

His reasoning, he said, is that “trust is one of the most important components in the success of a new producer. High ethical standards produce trust. Therefore ethics are the lifeblood of an agency and will guarantee success.”

An Ohio agent agreed there is no ethical duty to hire new producers–with a caveat: “There are no ethics in requiring anyone to sustain their business by hiring new producers. However there is a fiduciary responsibility to the shareholders and policyholders based on the corporate charter.”

This agent argued that “perpetuation in this business can no longer be sustained within the family. We choose to perpetuate our business through aggressive methods to find the 'right' person for our profession.”

He also noted that “we need to demand from our regulators a higher degree of professionalism to perform our responsibilities to the consumer. This can be achieved through more rigorous testing for licensing in a very complex world of contract law.”

As to the same ethical responsibilities for an insurer, the state plan executive noted: “Maybe the senior officers of the insurance companies have a moral responsibility to ensure new blood enters the business so that long-term obligations to insureds and claimants are met. But I don't think that they believe they have that responsibility. The average underwriter or adjuster probably does not believe he or she has an ethical duty to interest others in insurance.”

A property underwriter wrote that “as human beings we have an ethical obligation to ensure the continuation of our species. That would include passing along essential skills and knowledge to future generations.”

This reader added that while “I do not think insurance is essential for the survival of our species, it is important for its contribution to our economic and physical well being…”

The Nebraska agent commented that “the responsibility to actively recruit new blood will vary depending upon what capacity one is employed within the insurance business.”

“A CEO of an insurer has the responsibility to perpetuate long-term careers within their company, as it is vital to the success of that insurer and its place in the marketplace,” this agent said. “Conversely a clerical employee has ethical duties to work hard for the employer, but may not have an opportunity to support the long-term career objective of others.”

Those supporting an ethical duty to both seek new employees and invest time and money in long-term careers were primarily CPCUs. For example, a commercial property underwriter wrote that “as CPCUs, we are required to put the interests of our customers above our own. To fully embrace this would include an ethical imperative to support long-term career interests and recruit new blood.”

A consultant with the CPCU designation cited three rules from the Society's Code of Professional Ethics:

o “A CPCU shall support personnel policies and practices which will attract qualified individuals to the insurance business, provide them with ample and equal opportunities for advancement, and encourage them to aspire to the highest levels of professional competence and achievement.”

o “A CPCU shall encourage and assist qualified individuals who wish to pursue CPCU or other studies which will enhance their professional competence.”

o “A CPCU shall not initiate or support the CPCU candidacy of any individual known by the CPCU to engage in business practices which violate the ethical standards prescribed by this code.”

A home-office CPCU cited yet another rule from the Code: “CPCUs should be diligent in the performance of their occupational duties and should continually strive to improve the function of the insurance mechanism.”

This reader added that “as the insurance human resource pool ages and there is a shortfall of incoming employees, we have an obligation to support efforts to effect improvements in insurance operations that will benefit the public and improve the efficiency of the insurance function.”

Overall, all responding agreed that, ethics aside, it makes good business sense to seek new blood for the insurance business, and that given the current economic conditions, a greater group of people are now available for insurance employers.

The group of respondents was split about 50-50 on ethical duties that would apply to all employees. However, those with or who are pursuing the CPCU designation have clear ethical duties to seek out ethical and qualified new recruits, and to also invest time and money in their long-term careers.

The consultant mentioned a recent article by a manager who “likes to hire hungry new employees with 'the money gene.'”

While acknowledging that money can be a motivator–given that, at least for producers, insurance is one of the few businesses that provides the opportunity to earn unlimited income–the consultant believes that “to best benefit the future success of our business, I would suggest we recruit new blood that has 'the ethics gene.'”

To assist in finding individuals with the “ethics gene,” the CPCU Society has challenged all members to live up to their ethical responsibilities with its “Each One, Reach One” campaign. “Reaching out to prospective CPCU students is part of our mission as professionals,” the group says.

Peter R. Kensicki is a professor of insurance at Eastern Kentucky University in Richmond , Ky., as well as a member of the Ethics Committee of the CPCU Society in Malvern, Pa. He may be reached at [email protected].