Each person faces an ethical dilemma in life, and adjusters are some of the business professionals who encounter challenges in their daily lives. They might be tempted to engage in unethical practices, especially when the stakes are high, but this would perhaps damage their image. Therefore, they have to maintain high standards by following the established rules and standards in the field. One of the ethical dilemmas is related to achieving short-term goals versus long-term objectives. If an adjuster decides to realize the short-term goals without considering the future, then the chances are high that the interests of the insured would not be achieved because the claims representative would simply be interested in making profits and pleasing insurance companies.
However, any person in business has to design short-term goals because of the competitiveness of the market. This might make a claims representative give out leap service, as the only objective would be to make profits and nothing else. If an adjuster strikes a balance between his or her short-term goals and long-term objectives, there is a high likelihood that customers will be retained. In the insurance sector, adjusters are often encouraged to sell policies at the highest rates and ensure that compensation for the same risk is as low as possible. This would perhaps mean that an adjuster is competent and he or she would be the best employee in the market.
The nature of the market presents ethical dilemmas to the adjuster, as he or she would be aiming at satisfying the employer while at the same time trying to preserve his or her image. The adjuster has to ask him or herself several questions, one of them being the issue of good faith, which has always been the challenge. For instance, the question that is commonly asked is whether the settlement has to be equitable to both sides. Irrespective of the ethical dilemma, the adjuster has to maintain focus and ensure that he or she evaluates the interests of all interested parties before acting.
