Corporate Culture Promoting Trust Critical to Company Success, Says IMSA Leader.

NEW YORK -- "Companies can't fake it when it comes to ethical business practices," said Brian Atchinson, executive director of the Insurance Marketplace Standards Association (IMSA), here today.

"In 2005, demonstrating honesty, integrity and ethical standards are essential to a company's long-term business success," Atchinson said in a keynote address delivered at the Executive Summit for the Center for Business Intelligence. Atchinson also highlighted the importance of integrity and self-regulation at every level of a corporation, from the CEO and senior management through product design and development, marketing, sales and distribution.

"Maintaining high standards of ethical behavior, integrity and transparency through well-defined rules and procedures helps a corporation earn an excellent reputation among consumers who will have greater confidence in the products they purchase," he said.

Atchinson pointed to the elements the Securities and Exchange Commission sees as critical to the corporate "culture of compliance," including:

--setting the tone for ethical behavior at the highest level of management,

--providing ethical training for all employees,

--empowering employees to question corporate conduct,

--considering compliance risk assessments in all business decisions, and

--continually assessing compliance practices.

Emphasizing the importance of balancing corporate ethical standards with profitability and shareholder interests, he said, "A company must maintain consumer trust to achieve high profitability and must carefully comply with regulations."

IMSA was organized nearly 10 years ago to restore trust and confidence in the life insurance industry that had been badly shaken by scandal. To qualify for IMSA, a company must adhere to a specific code of high ethical standards. Noting that "the best defense is a good offense," Atchinson said the IMSA Principles provide an effective template for company compliance policies and procedures in promoting high standards of honesty and fairness and providing competent and customer-focused sales and service.

IMSA is a voluntary, nonprofit organization created to promote consumer protection and service through high ethical standards in the life insurance, long-term care insurance and annuity products industry. IMSA-qualified companies represent nearly 60 percent of the individually sold life insurance, long-term care insurance, and annuity products written in the United States. These companies commit to maintaining high ethical standards and to being fair, honest, and open in the way they advertise, sell and service their products. An important credential only a select number of insurers have attained, the IMSA seal is a guidepost of excellence and integrity for consumers. The IMSA website is www.IMSAethics.org.