What does "twisting" refer to in the field of insurance?

In the field of insurance, "twisting" refers specifically to the act of making false or misleading claims about a policy or product in order to persuade a policyholder to drop their current insurance coverage and switch to a different insurer. This unethical practice can involve distorting the benefits of a new policy while downplaying or misrepresenting the benefits of the existing coverage. It is considered a form of insurance fraud and can lead to serious legal and financial repercussions for those who engage in it.

The focus on false or misleading information highlights the importance of transparency and honesty in financial services, as policyholders rely on accurate information to make informed decisions about their insurance needs. Understanding this concept is crucial for those in the insurance industry, as it underscores the ethical responsibilities of agents and producers toward their clients.