KYB & KYC in Insurance

Know Your Business (KYB) and Know Your Customer (KYC) processes are becoming increasingly important across the insurance industry as firms strengthen due diligence, regulatory compliance and counterparty oversight.  
 
nsurers, brokers and MGAs are under growing pressure to verify counterparties, understand ownership structures and maintain stronger operational visibility across trading relationships.  
 
This guide explores KYB, KYC and Ultimate Beneficial Owner (UBO) requirements within insurance, including onboarding challenges, compliance expectations and the growing role of RegTech in supporting due diligence processes.
Book a Demo

What is KYB?

Know Your Business (KYB) refers to the process of verifying organisations and counterparties before entering into regulated business relationships.

Within insurance and financial services, KYB processes are commonly used to:

  • Verify business legitimacy
  • Assess operational risk
  • Understand ownership structures
  • Reduce fraud exposure
  • Expand distribution capabilities
  • Strengthen counterparty oversight

 
 
 
 
 
 
 
 

KYB & KYC in Insurance

What is KYC?

Know Your Customer (KYC) refers to the process of verifying the identity of individuals involved in regulated transactions or business relationships.

KYC processes are designed to help firms:

  • Confirm identity information
  • Assess risk exposure
  • Support AML obligations
  • Identify politically exposed persons (PEPs)
  • Strengthen compliance controls
  • Reduce financial crime risk

KYC requirements continue to evolve as regulators place greater emphasis on operational transparency and ongoing due diligence monitoring.

KYB & KYC in Insurance

Understanding Ultimate Beneficial Owners (UBOs)

Ultimate Beneficial Owners (UBOs) are individuals who ultimately own or control a business entity, either directly or indirectly.

Understanding UBO structures is an important part of KYB and AML processes because complex ownership arrangements can increase operational and financial crime risks.

Insurance firms increasingly need to:

  • Identify ownership structures
  • Verify controlling individuals
  • Assess risk exposure
  • Maintain audit-ready due diligence records
  • Monitor ongoing changes to counterparties

Why KYB & KYC Matter in Insurance

KYB and KYC processes play a growing role within insurance operations as firms strengthen compliance frameworks and improve counterparty oversight.

Insurance organisations increasingly need to:

  • Onboard counterparties efficiently
  • Verify trading relationships
  • Maintain stronger governance controls
  • Reduce exposure to financial crime
  • Support AML obligations
  • Improve operational transparency

As insurance ecosystems become more interconnected, firms are facing greater pressure to manage due diligence processes consistently across multiple counterparties and distribution relationships.

Common Due Diligence Challenges

Many insurance firms still rely heavily on fragmented onboarding processes, manual reviews and disconnected compliance workflows.

Manual Verification Processes

Manual Verification Processes

Managing identity and business verification through spreadsheets and email chains.

Ownership Complexity

Ownership Complexity

Understanding layered ownership and UBO structures.

Documentation Collection

Documentation Collection

Gathering and maintaining due diligence records efficiently.

Ongoing Monitoring

Ongoing Monitoring

Maintaining visibility after initial onboarding is completed.

Counterparty Oversight

Counterparty Oversight

Managing risk across multiple trading relationships and delegated structures.

Audit Readiness

Audit Readiness

Preparing evidence for governance reviews and regulatory scrutiny.

KYB & KYC in Insurance

KYB & KYC Workflows in Insurance

Due diligence workflows often involve multiple operational teams, counterparties and external data sources.

Typical KYB and KYC processes may include:

  • Business verification
  • Identity checks
  • UBO identification
  • Sanctions screening
  • Risk assessments
  • Ongoing monitoring

As operational demands increase, many firms are investing in technology-enabled workflows that improve efficiency, reduce duplication and support more consistent governance processes.

Improve Due Diligence and Counterparty Oversight

REG Technologies helps insurers, brokers and MGAs streamline KYB and KYC workflows, improve operational visibility and strengthen compliance oversight across regulated trading relationships.

Book a demo

How RegTech Supports KYB & KYC Processes

RegTech solutions are helping insurance firms simplify operational due diligence processes while improving oversight and governance visibility.

Centralised Due Diligence

Centralised Due Diligence

Manage onboarding activity, records and compliance workflows within one operational environment.

Improved Operational Visibility

Improved Operational Visibility

Maintain clearer oversight across counterparties, ownership structures and trading relationships.

Workflow Automation

Workflow Automation

Reduce manual administration linked to onboarding and verification processes.

Ongoing Monitoring

Ongoing Monitoring

Support continuous due diligence rather than relying solely on point-in-time reviews.

Governance and Audit Readiness

Governance and Audit Readiness

Maintain structured records supporting compliance oversight and regulatory reviews.

Scalable Compliance Operations

Scalable Compliance Operations

Support growing onboarding and due diligence requirements more efficiently.

KYB & KYC in Insurance

The Future of KYB, KYC & Due Diligence

Regulatory expectations around due diligence and counterparty oversight are expected to continue increasing across the insurance industry.

Firms are likely to invest more heavily in:

  • Operational transparency
  • Automated onboarding workflows
  • Ongoing monitoring
  • Ownership visibility
  • Centralised compliance processes
  • Technology-enabled governance

As insurance ecosystems become more digitally connected, scalable due diligence processes are becoming increasingly important for operational resilience and regulatory compliance.

KYB & KYC Resources

Explore the key operational and compliance considerations surrounding KYB and KYC processes, including onboarding, due diligence, governance and ongoing monitoring requirements.

A Guide to KYB/KYC Checklist: What You Need to Know

In the insurance market, firms are legally compelled to conduct KYB and KYC checks to mitigate risks of financial fraud and money laundering and ensure compliance with national and international regulations. Without proper systems in place, carrying out these necessary checks can be difficult, ultimately compromising business opportunities.

Learn more
picture Nathan Banfiield, head of customer success at REG Technologies
A Guide to KYB and KYC Checklist: What You Need to Know

A Guide to KYB/KYC Checklist: What You Need to Know

In the insurance market, firms are legally compelled to conduct KYB and KYC checks to mitigate risks of financial fraud and money laundering and ensure compliance with national and international regulations. Without proper systems in place, carrying out these necessary checks can be difficult, ultimately compromising business opportunities.

Learn more
picture Nathan Banfiield, head of customer success at REG Technologies
Behind Every Piece of Technology, There's a Human

Behind Every Piece of Technology, There’s a Human

Technology often feels like an unstoppable force, transforming industries, automating processes, and reshaping how we live and work. While these advancements bring incredible opportunities, they also come with some aspects of apprehension. From concerns about job displacement to fears of a faceless, algorithm-driven future, many people view technology with a mix of both excitement and anxiety.

Learn more
Ella Olamona is an Insurance Executive at REG Technologies
How AI Revolutionises KYC and KYB Processes in Financial Services

How AI Revolutionises KYC and KYB Processes in Financial Services

In the financial services arena, Anti-Money Laundering (AML) professionals are constantly seeking innovative ways to enhance the efficiency and accuracy of Know Your Customer (KYC) and Know Your Business (KYB) processes. One of the most transformative technologies in this arena is AI. By integrating AI into KYC and KYB procedures, financial institutions can significantly streamline their operations, particularly in areas such as analysing Politically Exposed Persons (PEPs) and sanctions screening data...

Learn more
Enhancing Transparency: The Significance of UBOs, Directors & Officers Declarations

Enhancing Transparency: The Significance of UBOs, Directors & Officers Declarations

In an era where regulated businesses are increasingly seeking transparency from their trading partners to ensure compliance with regulatory requirements and AML obligations, challenges in identifying Ultimate Beneficial Owners, Directors and Officers are leading to a lack of oversight and governance. Now, with the advent of RegTech, these processes have been streamlined and enhanced, underscoring the critical importance of transparency in today's corporate world...

Learn more
Picture of Sandra Simôes, head of product at REG Technologies
The Importance of Human Touch - Why B2B Businesses Must Prioritise Relationship Building in the Digital Age

The Importance of Human Touch – Why B2B Businesses Must Prioritise Relationship Building in the Digital Age

In an age where we are leaning more and more towards technology and AI, have we lost the essential human touch needed for business relationships and what can we do to maintain them?

Learn more
Charley Fryers
Ultimate Beneficial Owner (UBO) - What You Need To Do Now

Ultimate Beneficial Owner (UBO) – What You Need To Do Now

In the UK, one of the biggest challenges facing insurance firms is to obtain UBO information as part of AML due diligence. If you do not get your UBO screening and reporting right, it can result in significant increases in risks of financial crime and ultimately, penalties and fines...

Learn more

Frequently Asked Questions

What is KYB?

KYB stands for Know Your Business and refers to the process of verifying organisations and counterparties before entering into regulated business relationships.

What is KYC?

KYC stands for Know Your Customer and refers to the process of verifying the identity of individuals involved in regulated business activities or transactions.

What is a UBO?

A UBO, or Ultimate Beneficial Owner, is an individual who ultimately owns or controls a company, either directly or indirectly.

Why are KYB and KYC important in insurance?

KYB and KYC processes help insurance firms strengthen due diligence, support AML compliance, improve counterparty oversight and reduce exposure to financial crime risks.

What challenges do firms face with KYB and KYC processes?

Many firms face operational challenges around onboarding workflows, ownership visibility, document collection, ongoing monitoring and fragmented manual processes.

How can RegTech support KYB and KYC?

RegTech solutions can help automate onboarding workflows, centralise due diligence records, improve operational visibility and strengthen compliance oversight.


Improve Due Diligence and Counterparty Oversight

REG Technologies helps insurers, brokers and MGAs streamline KYB and KYC workflows, improve operational visibility and strengthen compliance oversight across regulated trading relationships.

Book a Demo