In today’s evolving financial crime landscape, the insurance sector is facing increasing scrutiny. Long considered a low-risk area, both life and non-life insurance products are now being exploited for money laundering, sanctions evasion, and fraud.
Despite these changes, many insurers still rely on outdated compliance systems that were not built to handle the sophistication of today’s threats. Fragmented workflows and rigid rules-based frameworks struggle to keep pace with dynamic criminal typologies, leaving firms exposed to regulatory, financial, and reputational risk.
A new white paper from Symphony AI titled “Elevating Compliance in Insurance: A Risk-Driven, AI-Powered Approach to AML and Sanctions Screening” outlines how insurers are adapting. It provides an in-depth view of the money laundering trends reshaping the sector and how both life and general insurance products are being targeted in increasingly complex schemes.
The report highlights that regulators around the world are now demanding that AML programmes be not only technically sound but also demonstrably effective. Simply ticking boxes is no longer sufficient.
Real-world examples in the white paper include money laundering through insurance claims, manipulation of policy loans, and the misuse of reinsurance arrangements.
To meet these challenges, the report argues that insurers must embrace AI-powered technologies. Artificial intelligence can help reduce false positives in transaction monitoring and sanctions screening, while simultaneously enhancing the detection of genuinely suspicious activity.
Read the white paper here.
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