There has been an increased awareness among consumers around life insurance products in India. That said, the sector continues to rely heavily on a “push-sale” methodology, thus leading to increased financial crime vulnerabilities.
While the potential of the sector is immense, with increasing regulatory scrutiny, customer-centric regulations (e.g. Sec 45), focus around cost optimization, enhanced client on-boarding and due diligence, implementation of a robust anti-fraud framework and effective utilization of technology enablers will be critical to mitigate financial crime risks.
Our report ‘Strengthening the life insurance industry in India by mitigating financial crime risks‘, provides an overview of the life insurance sector, prevalence of financial crime and emerging areas of concern.
Key highlights include:
Going forward, life insurers would need to enhance financial crime compliance frameworks, undertake measures on improving the team skill-sets, build a central repository and look at technology driven monitoring capabilities to prevent and detect financial crime.
Download the EY Life Insurance Report 2018 here: Strengthening the life insurance industry in India by mitigating financial crime risks