There are many quotes and sayings relating to ‘bullying’ and the heading of this article is just one.
Bullying takes all sorts of forms and in all walks of life and is a despicable practise and one that needs to be stamped out and punished accordingly. Sadly, despite the world being in a massive predicament right now, certain sectors of my own industry, the insurance industry, have decided to take advantage of the plight and difficulties some clients find themselves in.
Clearly, a large number of businesses are suffering financially during the worldwide pandemic and have found cash reserves dwindling and almost impossible to manage, and there has been a greater need for businesses to organise re-financing with their Banks. The governments of the world seem to be trying to help, some providing ‘loan guarantees’, others reducing business taxes and the like, but ultimately the banks hold the upper hand.
I am sure that many banks in Kenya are providing invaluable support to many businesses, but why do some think it is fair practise to stick that proverbial gun against the client´s head and insist that they place their insurances through the Banks own insurance agency or directly with an insurer that the bank owns? We have experienced it ourselves, where the client has been told ‘you want funding, you place the insurance with us/our Insurer’. In fact, one Bank actually asked an insurer to quote on one of our client´s portfolios WITHOUT the client´s authority!
So, if I can remind everyone out there in Kenya of what the rules stipulate under our Insurance Act:
Very simply, you cannot ‘bully’ a client into taking your insurance facilities and you MUST inform them of their rights to choose. Our association and all brokers will be watching this very closely in the coming months and, rest assured, we will report any breaches.
‘Strong people stand up for themselves, but the strongest people stand up for others’
If you have any questions related to the article above please email us on [email protected] or call us on 254 (0)709 445 000.