Financial crime on the rise in India's life insurance sector

Financial crime on the rise in India's life insurance sector

Financial crime on the rise in India's life insurance sector

Rising transactions with third parties, data privacy concerns and gaps in operational processes have augmented financial crime risks in the life insurance sector, stated EY Fraud Investigation & Dispute Services' report.

According to the report, 56% of the life insurers stated up to 30% increase in fraud over the last two years; 7% confirmed up to 50% increase.

The report noted that many life insurers were still in the process of complying with the implementation of IRDAI-mandated 'Fraud Monitoring Framework'. 1 in 3 life insurers said their organizations did not have fully established whistle-blowing mechanisms, enhanced third party due to diligence processes and robust fraud-response procedures.

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