India proposes new fraud controls for insurers

India’s insurance regulator has strengthened know-your-customer (KYC) rules to reduce policy fraud. “While carrying out the KYC norms, special care has to be exercised to ensure that the contracts are not anonymous or under fictitious names,” the Insurance Regulatory and Development Authority (IRDA) said. It will also require senior management to be involved in approving contracts with high risk customers, such as politically-exposed persons. The regulator has given insurance companies until October 31 to comply with the new rules. Under the changes to KYC rules, insurers must investigate any change in the recorded profile of customers. IRDA’s proposals are based on the recommendations of the international body for anti-money laundering, the Financial Action Task Force (FATF).