What does discrimination in insurance refer to?

Discrimination in insurance specifically refers to the unfair treatment of certain groups during the process of policy sales or pricing. This concept encompasses a range of practices where individuals or groups may be treated differently based on attributes such as gender, race, health status, or other personal characteristics, rather than solely on their relevant risk factors. In the context of insurance, this discrimination can lead to unequal access to coverage and unfair pricing strategies that do not reflect an individual's actual risk profile.

While other options might touch upon aspects of insurance practices, they do not encapsulate the broader definition of discrimination. For instance, offering lower rates to high-risk individuals or excluding pre-existing conditions may represent policy decisions based on risk assessment or underwriting guidelines rather than discriminatory practices. Refusing coverage to certain occupations could be considered risk-based management rather than discrimination, especially if the occupation is associated with higher risks. In contrast, the core idea of discrimination focuses on the unfair treatment of specific groups, making it essential for creating equitable insurance practices.