With increasing interactions with third parties, greater complexities around data privacy controls, technological advancements and increasing use of life insurance products as a lever for money laundering, the propensity for financial crime has enhanced significantly. The vulnerable areas in the sector are not limited to “claims” or on-boarding.
With the Insurance Regulatory and Development Authority of India (Irdai) releasing a guidance on monitoring and regulating fraud within life insurance companies through the Fraud Monitoring Framework circular, insurers have taken action to implement aspects, specifically in the areas of fraud policies and guidelines, response plans, training and awareness.
