Why up-to-date customer data is crucial for life insurance firms

Keeping up with UBOs, stakeholders and signatories of corporate life insurance customers is the key to compliance – and we make it easier than ever.

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Why accurate and up-to-date customer data is crucial for life insurance firms

In the life insurance sector, KYC requirements are stricter than ever, and AMLD6 must be implemented by June 2021. But bringing your existing customer data up to compliance - and staying compliant with even more detailed regulations to come - doesn't have to be a wild goose chase.

The need for ever-more detailed data in life insurance

When legal entities are end clients, a life insurance provider and its brokers usually have some information about the associated legal persons behind each entity – but generally not enough.

“It’s a regulatory obligation for insurance companies to collect additional information about their corporate clients’ ultimate beneficial owners, shareholders and signatories, to give a couple examples,” says Thomas Van Maele, co-founder and CEO of Harmoney. “The information they have in their own databases isn’t usually sufficient to be compliant today, hence the need to augment or enrich their data using external sources. That’s where we come in.”

It’s a regulatory obligation for insurance companies to collect additional information about their corporate clients’ ultimate beneficial owners, shareholders and signatories, to give a couple examples
Thomas Van Maele CEO at Harmoney

Client outreach is growing in importance

Through its existing integrations with data providers, Harmoney has the ability to enrich an insurance provider’s existing customer data using public information sources such as national registries and external data providers like Graydon or Bureau van Dijk.

Harmoney offers a one-stop shop to bring life insurance firms from a state where they are non-compliant due to incomplete or unvalidated data to a state of full compliance in a phased, automated way.

Thomas: “It’s important to note that as regulations become more stringent, the quality of publicly available data simply won’t be enough for compliance. This is why you can expect client outreach to be an increasingly vital part of KYC processes in life insurance.”

How Harmoney can help?

In addition to augmenting your existing client database with information from external data sources, Harmoney also offers a smooth, user-friendly customer outreach workflow, making it much faster and simpler to maintain the most accurate, up-to-date information.

“In the first stage, we enrich your data using the data sources of your choice,” Thomas explains. “Next, we perform a comprehensive UBO identification through a client outreach process that is fully managed by the Harmoney platform. We connect with the client by e-mail, SMS or even normal post, sending a client a link to our portal that they can use to digitally update missing or unvalidated information in a hassle-free way.”

Once your database has been completed, it serves as the basis for your company’s effective, compliant customer screening moving forward. “With a complete, validated, verified data vault, your business can maintain a clear overview of the risks that exist among your customer base,” Thomas concludes.

Comply with AMLD5 – and prepare for AMLD6 – by ensuring the most complete and accurate database for your corporate life insurance customers. Get in touch for a customized demo of our platform.