What does 'unfair discrimination' in insurance refer to?

'Unfair discrimination' in the context of insurance primarily refers to treatment based on protected characteristics. This encompasses scenarios where individuals are treated differently in terms of insurance coverage, premiums, or claims based on their age, race, gender, religion, marital status, disability, or other categories that are legally protected. Such discrimination is not only unethical but also illegal in many jurisdictions, as it undermines the principle of fair and equitable treatment in the insurance market.

The idea is that insurance should be priced and administered based on risk-related factors rather than personal characteristics that do not relate to risk assessment. For example, two individuals with similar risk profiles should receive similar treatment regardless of their gender or background. The regulation against unfair discrimination aims to ensure that all consumers have an equal opportunity to access insurance products without facing bias based on arbitrary and unrelated factors.

Other options, while related to unfair practices within insurance, do not capture the core concept of discrimination based on protected characteristics, which is specifically what 'unfair discrimination' indicates in the industry.