Use case
AML screening for
Insurance Companies
Stop money launderers from making use of your L&H and P&C products.
Trusted by 500+ companies worldwide
Why screening matters for insurance companies
While many in the insurance industry believe that banks and other financial organisations are the main targets of money launderers, the reality is considerably different. Insurance companies do not seem to be an obvious target for money launderers at first glance, because they are companies that sell policies rather than handling a steady stream of financial transactions.
A growing target
However, in real life, enormous, and frequently intricate amounts of money move in and out of insurance contracts, which require a large financial commitment. It should, thus, come as no surprise that financial fraudsters are increasingly focusing on this industry. In fact, in 2021, fraud or financial crime reportedly affected two thirds of insurance companies1.
Recognising suspicious activity
Suspicious activities include customers who want to pay premiums in cash or crypto-currencies, requests for transferring the benefit of a product to an unrelated third party or customers who overpaid the premium and want the money to be transferred to another bank account. When such activities occur, it is important to conduct the investigation by reporting the case to a dedicated Compliance Officer who ensures a proper analysis and avoids tipping off to the person in question. In order to report suspicious transactions, insurance companies must obtain pertinent customer information from agents, brokers, and any other sources2.
The required AML program
Typically, a written AML program/Bank Secrecy Act (BSA) that takes into account the covered insurance products must be developed by insurance companies. The following elements must be present in the program at a minimum:
- A designated compliance officer in charge of successfully carrying out the program.
- Training that is ongoing for the right people, such as brokers and agents of insurance.
- Internal controls, operating procedures, and policies that are adapted to the institution's AML risks.
- Independent testing to keep track of ongoing compliance, including checking insurance brokers' and agents' compliance.
The challenge
The approach
In general, both L&H (Life and Health) insurance and P&C (Property and Casualty) insurance are subject to AML regulations, but the specific requirements may vary depending on the jurisdiction and the type of insurance. The Financial Action Task Force (FATF) Recommendation 12 specifies the measures financial institutions, such as insurance companies, must take in order to establish whether beneficiaries of life insurance policies are in fact Politically Exposed Persons (PEPs)5.
Through AML screenings, insurance companies can identify and report suspicious transactions, reducing the risk of facilitating illegal activities and protecting themselves from potential legal and financial consequences. It is also important for insurance companies to conduct AML screenings in order to protect their reputation and demonstrate their commitment to preventing financial crime.
Why dilisense
dilisense can support insurance companies with the automation of their AML measures while keeping compliance costs under control. Be it at the point of sales via call center, in an online journey or post-sales when monthly premiums are collected or if mid-term adjustments like bank account updates are performed. Our products can be seamlessly integrated into existing processes independent of the size of your books or the sales volume.
Insurance companies can quickly access crucial information required for assembling risk profiles of their clients by screening against a myriad of relevant sources. This information can be used to identify PEPs, prohibited individuals and organisations, blacklisted and most sought criminals, and sanctioned individuals and corporations. Get in touch with us today for a tailor-made offer!
04 — Recommended products
The right setup for insurance companies
Every product screens against the same consolidated database — pick the integration that fits your team.
AML Screening API
Real-time REST API to screen against 10,000+ global sanctions, PEP and adverse media sources with sub-150ms response.
Ongoing Monitoring
Continuous re-screening of your customer base with instant alerts when sanctions or PEP status changes.
No developers? No problem.
Screen thousands of names against the full database directly from an Excel file — no API integration, no engineering time.
Pay per use
A screening API at a fraction of the usual market price
Integrate the REST API and pay per call — no seat licenses, no minimum contract. Start on the free tier and scale into volume pricing as your check volumes grow.
per call, pay as you go
free calls every month
per call at volume
Frequently asked questions
Yes — both L&H (Life and Health) and P&C (Property and Casualty) insurance are generally subject to AML regulations, though specific requirements vary by jurisdiction and type of insurance. FATF Recommendation 12 requires establishing whether beneficiaries of life insurance policies are Politically Exposed Persons (PEPs), and insurance companies typically must develop a written AML program covering a designated compliance officer, ongoing training, internal controls and independent testing.
Insurance companies typically screen at the point of sale — in a call center or online journey — and again post-sales when monthly premiums are collected or mid-term changes like bank account updates occur. dilisense offers a REST AML screening API with JSON responses that plugs into these existing processes regardless of book size or sales volume, plus automated ongoing monitoring that rescreens customers and alerts on risk profile changes.
Insurance companies screen policyholders and beneficiaries against international and domestic sanction lists, Politically Exposed Persons (PEP) data, criminal and enforcement sources, and further regulatory watchlists. This information feeds the risk profiles insurers assemble on their clients, identifying PEPs, prohibited individuals and organisations, blacklisted criminals, and sanctioned individuals and corporations. dilisense updates its data from public sources every 60 minutes.
dilisense API screening is pay-per-use with no monthly fee and a monthly allowance of free calls, so an insurance company's compliance costs stay proportional to its policy volume. Insurers without IT resources can screen whole policy portfolios through Excel-based batch screening with no integration work, and an unlimited free web search for sanctions, PEP and criminal checks requires no registration.
References
Swiss discretion by default
Some of our clients allow us to share their names in certain cases — ask us for references and we’ll connect you.
Related industries
- 1 https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html
- 2 https://rsmus.com/insights/industries/insurance/anti-money-laundering-compliance-for-insurance-companies
- 3 https://www.fincen.gov/resources/statutes-regulations/guidance/frequently-asked-questions-anti-money-laundering-program-0
- 4 https://www.federalregister.gov/documents/2005/11/03/05-21917/financial-crimes-enforcement-network-amendment-to-the-bank-secrecy-act-regulations-anti-money
- 5 https://www.fatf-gafi.org/media/fatf/documents/recommendations/Guidance-PEP-Rec12-22.pdf