KYC Automation: How It Transforms Insurance Onboarding
KYC (Know Your Customer) plays an important role in the insurance industry, particularly during the onboarding process. It verifies that the customers are legitimate and avoids potential risks. A smooth and efficient onboarding increases trust and satisfaction with the business, while a slow and complicated process can easily drive them away to competitors. Traditional KYC leads to inefficiencies, such as being time-consuming and prone to errors. Thus, automation comes as the best strategy for the KYC process. This article will discuss more how KYC automation transforms insurance and accelerates the onboarding process while also proving the best KYC software for businesses to implement.
Manual vs Automated KYC in Insurance Onboarding
Insurance typically conducts two methods for KYC, which are manual and automated.Here are the comparisons.
1. Manual KYC
Manual KYC requires staff to review every customer’s documents one by one and input them into the system manually. This process is significantly time-consuming, as one document may take 10 minutes, while hundreds of papers may take hours or even days. Manual methods also carry high errors, such as typos during data entry and a lack of detection of signs of fraud. If businesses continue to rely on manual KYC, it can slow down onboarding, reduce staff productivity, and impact customer satisfaction. Moreover, if fraud goes undetected, the business can face legal issues, financial losses, and a damaged reputation.
2. Automated KYC
Automated KYC leverages advanced technologies such as OCR and biometric verification to extract and validate data in real time. Unlike the manual method, which requires many staff to check documents and enter data, automated KYC processes are fully done by AI with faster and precise verifications. Automated KYC allows for faster onboarding, which previously took days but now can be completed in minutes. This not only speeds up onboarding, but it also brings many benefits, such as:
– Minimizes human errors and missed details
– Detect fraud quickly and accurately, enhancing security
– Improve customer experience
How KYC Automation Works in Insurance
1. Document Capture and Data Extraction
Customers upload their documents into the platform. Optical character recognition (OCR) instantly reads the information, extracts it, and digitizes the data.
2. Identity Verification
After the data is extracted, the system validates customer details using biometrics checks such as facial recognition or liveness detection. The system will analyze and verify the data is legitimate and matches with the real owner.
3. Compliance Screening
Insurers can also check the customers against a watchlist screening to identify potential risks or suspicious activity by filling in customer data into the system.
4. Approval and Integration
Once verification is completed, the system provides real-time approval and integrates customer data into the insurer’s platform. The customer can proceed seamlessly to payment.
Verihubs as the Best KYC Software to Automate Insurance Onboarding in Southeast Asia
KYC automation helps insurance industries to significantly improve workflow efficiency. With its wide range of capabilities and benefits, Verihubs stands out as the best KYC software for insurers in Southeast Asia. It can verify using advanced services such as OCR technology, facial recognition, liveness detection, and watchlist screening. By implementing Verihubs, insurers not only accelerate the onboarding process but also protect businesses from any signs of fraud, anti-money laundering (AML) risks, and compliance with regulations.
Contact our expert team today to experience the full power of Verihubs’ features.
