Which activity is prohibited for insurance agents under the principle of unfair discrimination?

The principle of unfair discrimination in insurance mandates that individuals in similar circumstances should receive similar treatment regarding their insurance rates and policy terms. This ensures fairness and equity in how insurance services are provided.

Providing different rates to clients who are in identical circumstances is a direct violation of this principle. For instance, if two clients present identical risk profiles but one is charged a higher premium than the other, this can be seen as unfair discrimination. It undermines the fundamental concept of actuarial equity in insurance, which is based on the idea that individuals with similar risks should have similar costs for their insurance coverage.

In contrast, offering the same policy terms to all clients supports fairness and promotes equal treatment, which aligns with regulatory expectations. Promoting only high-risk insurance policies does not inherently involve discrimination, as it might simply reflect a business strategy rather than unfairly differentiating between clients. Encouraging clients to withdraw from existing policies pertains to customer service and ethics, rather than the pricing structure subjected to the principle of unfair discrimination.