Growing Frauds and Financial Crime in Insurance and the Role of Digital KYC
According to the figures provided by ABI, in 2019 insurers uncovered 130,000 fraudulent…
The rising number of fraud in the insurance sector is terrifying and preventing thes ecrimes has become a strategic priority. The Financial action task force (FATF) has also warned that certain insurance products are getting increasingly attractive to criminals. The FATF says that two-thirds of insurance sector cases worldwide relate to life insurance and the general insurance still poses a higher risk as well.
The insurance brokers, often unaware of the risks, are becoming an easy target for financial crimes. Application fraud, ghost brokers, data breaches, false claim fraud, health insurance fraud, and phishing attacks have significantly increased over time. Fraud in the insurance industry steals $80 billion in all the lines. This makes KYC an essential requirement in preventing financial crime in the insurance industry.
This whitepaper will focus on why performing KYC is essential for the insurance industry and how Digital KYC by Shufti Pro can help insurance providers in this regard. Powered by advanced technologies like Artificial Intelligence (AI), these solutions flawlessly analyze the identification data of customers, establishing that they are actually who they claim to be