In the insurance context, what does "twisting" refer to?

In the context of insurance, "twisting" specifically refers to the practice of unjustly persuading a customer to switch from one policy or insurer to another, often through misleading or false information about the benefits of the new policy or the drawbacks of the existing one. This action can lead to detrimental outcomes for the policyholder, including losing valuable benefits or facing higher costs.

Understanding this term is crucial for both insurance professionals and consumers, as it highlights the importance of ethical practices in the insurance industry. Regulatory bodies have established rules to prevent twisting because it undermines consumer trust and can result in significant financial harm to individuals who are misled. This practice is particularly concerning because it prioritizes the agent's commission over the best interests of the client, emphasizing the need for transparency and ethical conduct in insurance transactions.