What term is used for persuading a policy owner to switch policies from one company to another?

The term "twisting" refers to the practice of persuading a policy owner to switch their insurance policy from one company to another, often by making misleading or deceptive statements about the benefits of the new policy. This practice can sometimes involve exaggeration regarding the advantages of the new coverage while downplaying or omitting relevant information about the existing policy.

Twisting is typically viewed as unethical and can lead to negative consequences for both the policyholder, who may end up with less favorable coverage, and the agent who engages in such practices, as it often violates regulatory standards in the insurance industry. Understanding this term is crucial for recognizing ethical practices and regulations in insurance sales and ensuring that policyholders make informed decisions about their coverage options.

The other terms mentioned, such as rebating, knocking, and discounting, do not specifically refer to the practice of persuading policyholders to switch between companies. Rebating refers to offering a portion of the premium back to the policyholder as an incentive, knocking generally relates to cold calling or unsolicited solicitations, and discounting pertains to reducing the price of premiums. Each has its own implications and regulations in the insurance field, distinct from the concept of twisting.