What Exactly Is Insurance Twisting? How Does It Work?

Published on: March 9, 2023

Last Updated on: March 10, 2023

Insurance Twisting

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Insurance Twisting is an action that often takes place in practice, despite the statutory prohibition. So what does this term mean? It is about trying to convince the owner of the insurance policy to abandon it and take another policy through manipulation. The manipulative component of such a belief consists of several aspects at once:

  • There is a misrepresentation of the information used in the policy comparison.
  • The comparison of the pros and cons of both policies is based on incomplete data.

Thus, the existing policy is positioned as unprofitable, and the benefit of the proposed policy is exaggerated. It is not for nothing that in the vast majority of states there is legislation in which there is a clear insurance twisting definition. This is a type of action classified as a crime.

What is twisting in insurance: terms

twisting in insurance: terms

There are many ways that insurance agents use to sell their services. The insurance business in the United States is growing rapidly. A lot of competition in this niche becomes the background against which some companies and agents do not hesitate to work in bad faith. Accordingly, there are agents who manipulate their customers to buy their policies. Even worse, when they use this method to convince a person to abandon an existing policy that he had previously chosen and paid for.

Twisting and churning are when a person is actually persuaded to change an existing policy for a similar one but from a different company. This way of interaction between an insurance agent and a client is not in vain an offense. This is how the regulations of most states define a twisting insurance term.

The point is that the client ends up in the red. He had a very adequate insurance policy that fully met his needs. This customer undergoes deception into believing that the new policy will be the best for him. But in fact, he bought a similar product, only from a different insurance agent. If you are looking for an answer to the question “what does twisting mean in insurance?” then we are talking about the described manipulation format.

What policies are usually used with this method?


Although this illicit mechanism can be used with different policy options, some of them are the most common. These are policies aimed at life and health insurance.

If we consider the issue from a psychological point of view, then everything becomes clear. Questions related to health and life appeal to our instinct for self-preservation. When these topics are skillfully manipulated, many interlocutors become more suggestible. Scammers actively use this circumstance and also such a method as twisting and churning insurance. No wonder legislators define twisting in insurance as a crime.

First, the potential client listens to how important the topic is. This is not difficult to do when it comes to life and health. In such matters, it is important for a person to know that he really has sufficient guarantees from his insurance company. Then false arguments come next, trying to convince him that the policy he has does not give proper guarantees. And when this potential customer is already getting quite anxious and disoriented, another company offers him a new insurance policy.

In fact, such a policy is no better, but in a situation of excitement after psychological manipulation, the client trusts the insurance agent. Thus, churning and twisting insurance is a clear psychological pressure. It becomes possible due to the juggling of facts and biased comparison of insurance policies that are very similar in their characteristics.

Churning and twisting insurance: why is it so bad

Now that we have figured out what is twisting in insurance, it is important to consider another question of why this phenomenon seems so negative. Perhaps someone will say that in other areas, companies also compete with each other. However, the definition of twisting in insurance suggests that this is not a way to compete fairly. There is certainly an element of fraud here, which manifests itself in several aspects at once:

  1. A person is imposed not just what he does not need, but what he already has.
  2. They try to show that the policy that is already available is not reliable enough.
  3. The new policy that is being sold does not differ in more favorable terms.
  4. There is always an element of manipulation and pressure on triggers.
  5. The agent uses the method of juggling facts and biased comparison, speculating on the vulnerability of the client.

If we take into account all these factors, it becomes clear that this is unfair competition between insurance agents. There are immediately 2 categories of subjects that suffer from such activities. They are:

  • The clients themselves, are ready to buy what they already have.
  • Honest insurance companies do not use such unscrupulous methods to promote their products.

Therefore, this phenomenon should not be considered harmless or classified as one of the types of competition. Such competition is not adequate and harms everyone except the agents themselves.

How is the issue resolved at the legislative level?

We have already figured out that insurance twisting is a crime. It remains to answer the question of what legislative norms are used to classify it. We are talking about articles of legislative acts that provide for liability for fraud.

If an agent is caught committing such an atrocity, he is held legally liable. The case involves the National Association of Insurance Commissioners. As part of this Association, there is a special legal body, which is entrusted with the function of protecting people from deception during the sale of insurance services and products. There is also a Law that prohibits unfair trading practices.

Summing up, it is worth noting: everyone chooses a sphere of work that is comfortable for them. For some, this is call tracking for healthcare providers, for some, it is management or marketing, for others it is the sale of insurance policies. But, regardless of the industry where a person works, his activity must be legal.




Sumona is a persona, having a colossal interest in writing blogs and other jones of calligraphies. In terms of her professional commitments, she carries out sharing sentient blogs by maintaining top-to-toe SEO aspects. Follow her contributions in RSLOnline and SocialMediaMagazine

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