Which action is considered unethical in the insurance industry?

Influencing clients to leave their current policies for a new one is viewed as unethical primarily because it can lead to decisions that may not be in the best interest of the client. In the insurance industry, the ethical responsibility of the agent or broker is to ensure that the client’s needs are met in a way that is fair and transparent. This means that agents should prioritize the client’s welfare rather than their own potential commissions or incentives from selling new policies. When an agent persuades a client to abandon a policy, it may not be based on a comprehensive assessment of the client's current coverages, needs, or the true benefits of the new policy being offered. This can result in gaps in coverage, increased costs, or the loss of valuable benefits from the existing policy. Ethical practices in insurance encourage agents to focus on providing value and fostering trust rather than pursuing sales at any cost.