Insurers have high volumes of data from customers and claimants. Under the legislation, insurance companies must comply with due diligence and reporting obligations. This includes the following compliance checks:
Comparison of policy holders and contract partners with sanctions lists and PEP lists
Identify risks of policyholders such as country risk or industry risk
Risk-based analysis of unusual payments and money laundering scenarios
Complying with regulatory requirements, avoiding penalties, and securing reputation are the drivers of compliance in insurance. These measures are among the basics of due diligence:
Identifying policy holders and contractors is a prerequisite for compliance. The basic record is created from information from official documents. Ideally, in the course of the business relationship, the master data is expanded to a 360-degree profile by enriching the master data with information on the personal interests, name and industry of the employer, etc.
KYC includes checking the initial risk assessment against sanctions and PEP lists. If the customer is on board, insurers regularly compare the data with sanctions lists and PEP entries to find out if the risk has changed. What is economically interesting is the identification of actual risks, - also known as true positives. The fewer false positives, the lower the cost of (unnecessary) clarification.
Financial transactions can be an indicator of money laundering. Suspicious transactions include payment of high lump sums into life insurance, conclusion of insurance policies just below the threshold of identification (15,000 euros in the EU), and unusually high premium payments in relation to the policy holder's income.
In its software, ACTICO provides compliance rules that bring transparency to personal and transactional data. The software identifies unusual business transactions and makes the results available for clarification. Furthermore, machine learning supports the analyses with learned rules, helping to improve the quality of compliance.
Anti-money laundering insurance checks are based on risk-oriented compliance monitoring of personal data and transaction data. Learn how insurance companies periodically review high volumes of data for compliance risks.
New and existing customer data must be reconciled with entries in sanction and PEP lists. ACTICO Software supports you.