The UK insurance industry is the industry that has a tremendous market value of over £200 billion, as per statistics’ insurance report. But with great value comes a significant risk as well. Identity fraud, fraud claims, and identity theft are real concerns for insurance companies. In the digital landscape of the insurance industry, protecting against financial fraud has become paramount for insurance companies. Otherwise, insurance companies may have to face financial fraud, and some fraud stats will clear the picture for it, as they are:
- As per the Association of British Insurers (ABI)reports, around £3 billion in costs to the UK economy annually.
- Motor insurance fraud specifically contributes nearly £500 million in losses each year. It is reported by the Insurance Fraud Bureau (IFB).
- The IFB also underscores the detection of approximately 130,000 dishonest insurance claims annually in the UK.
Why KYC Solution Provider Imperative?
It is the stage where Know Your Customer (KYC) solutions step in for the insurance industry and help insurance companies in the UK authenticate identities during the customer onboarding process and even for insurance claims at the time of maturity. KYC Providers play a massive role for insurance companies as they help in various ways, as they are:
AI-powered Identity Verification:
Automated KYC software authenticates the identities of the customer thoroughly via various ID documents like passports, licenses, Government-issued ID cards and utility bills. It ensures genuine identity for insurance businesses in the UK and helps to recognise fraudulent identity that uses fake ID documents. KYC solutions help verify customer identities in real-time using facial recognition, liveness detection and video KYC. Therefore, KYC helps with complete identity verification and ensures safe business.
Frictionless Customer Onboarding:
Digital KYC solution assists in identifying and verifying identities quickly. It provides a faster and more convenient onboarding experience to the customer. The insurance industry is a financial industry where a frictionless customer onboarding process represents a reputation for a good company that wants to ensure fraudless business based on genuine customers.
Enhance Fraud Recognition:
Advanced KYC Solutions leverages AI and ML algorithms that help identify patterns of fraudulent behaviour and enable insurance companies to recognise these suspicious identities. It helps insurance companies to mitigate risks and reduce fraud.
Ensure Regulatory Compliance:
KYC solutions assist insurance companies in meeting their compliance obligations by conducting a thorough due diligence process. It ensures the FCA’s regulations and prevents the financial penalties of rules.
Build Customer Trust:
Digital KYC solutions help insurance companies in fraudless business by identifying genuine customers for them. It helps to maintain the fraud-free insurance business, which represents the reputation of any company in the competitive market. KYC API keeps your business ahead of the curve, helps build customer trust, and helps with business growth.
Reputation Protection:
KYC services providers proactively combat financial fraud for insurance companies in the UK. It safeguards the reputation and integrity of insurance companies by enhancing trust among policyholders and stakeholders.
How does UK KYC contribute to the Insurance industry?
UK KYC is one of the reputed KYC companies in the UK that provides comprehensive identity verification solutions not only for UK insurance companies but for banks, financial institutions, fintech companies, cryptocurrency, online gaming, Healthcare, education, travelling, telecommunication, e-commerce and other businesses. Their KYC API is designed for the financial industry and suits the insurance sector.
What makes UK KYC unique from others?
- UK KYC friendly with insurance industry regulations.
- Their API is fully AI-powered, keeping you ahead of the curve in the insurance industry.
- Provides customised solutions like ID verification, age verification, document verification, KYC verification, facial recognition, biometric verification, liveness detection, video KYC, AML verification, PEP, Sanction list and adverse media verification.
- Provides customer support as per the need
- Their KYC API verify identities quickly within seconds.
- Accessibility to various data resources that help to verify identities thoroughly.
Conclusion:
Financial criminals keep an eye on the insurance industry to commit fraud. It is pretty essential to have a proper identity verification system that assists in combating financial criminals, money launderers and identity fraud. Implementing the robust digital KYC solution authenticates the identity of the customer during the customer onboarding process and even for real-time checks during the insurance claim of the policyholder. It mitigates identity fraud, prevents financial fraud, and protects policyholders and insurance companies. Investing in technology is a secure future insurance business, and it will help you conduct fraud-free business transactions.