Know Your Investor solution is the methodology developed to combat financial crimes in the digital industry. It verifies business entities, shareholders, company directors, and creditors interested in investing in the firms. KYI methods evaluate all the high-risk factors that are prone to fraudsters. It also offers diverse approaches that assist businesses and related companies to enhance their security systems. KYI provides a streamlined investor onboarding process to authenticate investors across the globe. Furthermore, learn about the digital insurance industry and the KYI process in the next section.
Crucial Findings
- Explore the digital insurance sector and KYI
- Types of crimes the insurance industry encounters
- KYI solutions for the insurance sector
- How to optimize KYI methods with best practices
Digital Insurance Industry and Investor Verification Service
The insurance industry is growing rapidly with the progression of technology. Everything has transformed into digital platforms, and traditional dealings are reduced. Digital devices are quicker and more streamlined; therefore, the chances of crimes have increased.
The need to inaugurate an investor verification system has become a need as companies are required to adopt whatever is coming. In such scenarios, the KYI method works as a defense mechanism against all illicit operations. The advanced AI solutions are easier, faster, more efficient, and more accurate. Also, the investor verification process ensures legal and tax compliance and mitigates the fraud risk. Furthermore, it aims to encounter a range of challenges that every company in the insurance industry faces. Learn about the types of crime insurance sectors meet.
Types of Crimes in Insurance Company
Multiple companies in the insurance industry do not recognize the potential risk factors that can cause significant loss to the firm. There are several crimes organizations find challenging to overcome. Listed below is the list of fraud insurance companies encountered.
- Robbed Identities
Data of entities and their identities can easily be robbed from the systems if multiple individuals have access to the same. Fraudsters aim to misuse the identities for illegal operations to access the system and steal the original identities to get access to further social security information and personal financial details.
- Fake Insurance Claims
It happens on an everyday basis in the insurance company as individuals claim that they can access the property as their associated people are no more. They are the only hires and have insurance. However, the actual situation is not the same. Moreover, businesses that are interested in investing might refrain from getting associated with companies that do not have strong security controls.
- Black Money Dealing
It is one of the most critical issues in the industry as criminals can easily proceed with the black money and claims they have filed with the insurance company. However, it helps them to quickly receive back the black money using bank accounts. Although the threat rate is concerning compared to the financial industry, it is still manageable.
- Account Takeovers
It is also referred to as ATO and is an online crime in which the hacker gets unauthorized access to the entity’s account. By hacking the profile, the attackers can easily get unofficial access to the account, leading to data breaches and the exfiltration of massive amounts of sensitive credentials.
Investor Verification Solutions for the Insurance Industry
The investor verification solution enhances the company’s security measures. The whole process starts with collecting details and then proceeding for further inspection. Following is a quick three-step digital KYI process:
- Collect investor information
- The expert MLRO (money laundering reporting officer) validates the documents
- Monitor investor details against several watchlists
The instant verification system eliminates the hassle of tedious and long methods in insurance companies and verifies investor background with robust check methods. However, it also allows the insurance businesses to strike a proper balance between fraud prevention and AML compliance.
Optimized Know Your Investor Services with Best Practices
To enhance the KYI methods for preventing money laundering and other financial crimes, the insurance companies can include the following practices:’
- Integrate CDD and EDD solutions.
- Check methods against the sanctions list
- PEP screening
- Constant monitoring
- Tracking transactions
- Robust risk assessment approaches
Final Words
Insurance organizations seeking to combat fraudulent activity and improve the client rate should opt for Know Your Investor solutions. The strong and efficient KYI method has reduced manual work and transformed the lengthy and tedious approach into automated systems. The key to scaling businesses requires robust security protocols. The advanced and multi-layered strategy to protect companies against complex scenarios can easily be incorporated into the existing systems.