Why might an agent engage in twisting practices?

Engaging in twisting practices typically involves an agent persuading a policyholder to replace an existing policy with a new one under false pretenses or without adequate justification. The primary motivation behind this unethical behavior is often to earn higher commissions. Insurance agents usually receive a commission for each policy they sell, and by convincing clients to switch policies, they can benefit financially from the new sale.

This practice is harmful to consumers, as it may not provide them with better coverage or improvements to their existing policy, and could even lead to increased costs or loss of benefits. Understanding this motivation helps in recognizing the importance of ethical practices within the insurance industry, where the focus should be on providing value to clients rather than simply generating income for the agent.