What is a consequence of failing to adhere to ethical standards in insurance?

Failing to adhere to ethical standards in insurance can lead to increased regulatory scrutiny. Insurance regulators are responsible for ensuring that insurance practices are fair, transparent, and protect consumers. When ethical breaches occur, such as fraud, misrepresentation, or unfair treatment of clients, regulatory bodies may respond by conducting investigations, imposing fines, or enacting stricter regulations. This scrutiny can result in a loss of trust in the insurance industry as a whole, not just for the individuals or companies involved in the unethical behavior. Therefore, maintaining high ethical standards is crucial for avoiding these negative consequences and ensuring compliance with the law.