An industry body has published a guide for its members detailing their rights concerning redundancies.
In a new 22-page document, the Chartered Insurance Institute (CII) issues advice on a range of topics, including the legal entitlements of employees.
It says: "The way in which a redundancy process is handled can give rise to various claims, including unlawful discrimination and unfair dismissal," the FT Adviser reports.
The guide adds that if a redundancy dismissal is shown to have been a "sham" and that the real reason for dismissal is unlawfully discriminatory then there is "no limit to the relevant compensation recoverable from a successful claim".
CII chief executive Sandy Scott added that an estimated 6,000 jobs in the UK insurance industry were lost in the first eight months of last year.
Claiming to have around 90,000 members and with roots tracing back over a century, the CII aims to set professional standards for the insurance industry.