KYC in Insurance
Life, investment-linked and general insurers are subject to KYC and AML rules because policies can be used to place, layer and integrate illicit funds. Digital distribution means onboarding, claims and beneficiary changes increasingly happen remotely.
What KYC and AML controls look like in insurance
- Identity verification of policyholders and beneficiaries.
- Screening of applicants and beneficiaries against sanctions and PEP lists.
- Source-of-funds checks for single-premium and high-value policies.
- Biometric re-authentication for claims and surrender requests.
- Periodic review for long-term contracts.
Common challenges
- Agent-led sales channels with inconsistent document quality.
- Fraudulent claims and beneficiary substitution.
- Long policy lifetimes over which risk changes.
How IDWise supports insurance
The Continuous Trust Platform is configured to the regulator and risk profile of each insurance customer, combining the modules below in one journey with a complete audit trail.
Frequently asked questions
Does insurance require KYC?
Yes for life and investment products in most jurisdictions, and increasingly for general insurance where regulators apply AML rules.
When is enhanced due diligence needed in insurance?
For high-value or single-premium policies, PEPs and complex beneficiary structures.
How can insurers verify beneficiaries remotely?
With the same document-and-selfie verification used for policyholders, triggered at claim or change events.
Related terms
Talk to an IDWise specialist about your markets, regulators and risk controls.