Anti-Money Laundering (AML) in Insurance in 2024

As regulated businesses, insurers and insurance brokers must meet certain anti-money laundering (AML) commitments.

In this post we’ll take a look at the sort of AML trends that might impact regulated businesses like yours in 2024.

Insurers and insurance brokers must meet certain anti-money laundering commitments

Artificial Intelligence in Anti-Money Laundering Processes – New Opportunities and Threats

Artificial intelligence (AI) is quickly transforming the way we live and work, creating new opportunities and threats in multiple sectors. AI and machine learning tools are capable of processing huge amounts of data in next to no time. Insurers and insurance brokers can therefore use AI models to automate numerous time-consuming and repetitive tasks, enhancing both the efficiency and effectiveness of AML processes.

Yet regulated businesses must ensure the AI models they use can be trusted to deliver the accuracy, reliability, and transparency they need to remain compliant. They must also be aware of AI’s potential to return false positives, along with the risk that criminals may also turn to AI to improve the efficiency of their money laundering schemes.

Any insurer or broker that wants to join the AI revolution in 2024 should outline a detailed implementation plan, including a thorough onboarding process for your AML teams. For this, you may have to work with an expert consultant, or else outsource the process to a dedicated third party provider.

AML Regulatory Developments

A major challenge with meeting AML and other regulations is that the regulations tend to change from year to year.

Regulations in Response to AI
For example, regulators have been forced to introduce a host of new regulations in recent years in response to the rise of artificial intelligence. The FCA, for example, released a report on the use of AI in financial services. The report recommended that businesses conduct regular assessments of the possible impact that any AI systems might have on compliance and risk management. But as AI gets more widespread, expect to see further regulations, and further measures to enforce them.

Co-operation and Information Sharing Regulations
Beyond AI, the EU is planning to enforce new regulations to enhance cooperation and information sharing across their member states. This will involve the creation of a new dedicated AML authority that will act as “the central authority coordinating national authorities to ensure the private sector correctly and consistently applies EU rules.”

Reviewing Your AML Policies
Not all new regulations will apply to all regulated businesses. But insurers and brokers should periodically review their AML policies in line with the current and developing regulations. To remain compliant, you should be prepared to revise your procedures, or conduct additional staff training and development, wherever necessary.

The Growing Role of the AML Specialist

Previously, regulated businesses might have viewed AML as a single aspect of a wider war on financial crime and fraud. But largely thanks to the growing power of AI, financial criminals and fraudsters are getting smarter, faster, and more sophisticated all the time.

The role of the AML specialist will need to evolve to meet this growing threat. This might result in more integrated AML processes. Businesses must look beyond pure compliance and instead strive for a holistic approach to AML and risk management. AML specialists will have to work across teams, channels, products, and systems, while also sharing information with both regulators and law enforcement agencies to create a united front against the changing face of financial crime and fraud.

Insurers and brokers may increasingly rely on software as service (SAAS) systems to achieve this more holistic and integrated approach to risk management and compliance.

As an MGA, we offer bespoke insurance software solutions for insurance companies of all sizes. Our SAAS can include both tailored brokerage and end-to-end fulfilment solutions.

Learn more about how our award-winning SAAS helps insurers, brokers, MGAs, agents and program providers. If you have any questions, or you’d like to discuss your options, you can contact the Tapoly team at, call our info line on +44(0)207 846 0180, or use the chat box on our website.