Insurance companies manage risks with effective sanctions compliance strategies.

TLDR:

• Sanctions compliance is crucial for insurance companies to maintain ethical operations and national security.
• US Department of the Treasury’s Office of Foreign Assets Control (OFAC) has increased focus on InsurTech sector’s adherence to sanctions.

Sanctions are used as a foreign policy tool to penalize unlawful activities. Insurance firms must comply with these regulations to avoid legal issues and reputational damage. OFAC recently fined an insurance company for sanctions violations, highlighting the severity of non-compliance. Insurers must pay close attention to policies in sectors like maritime and travel insurance, which are vulnerable to sanctions violations. To effectively manage sanctions risks, insurers need to establish a robust compliance framework, including automated tools for continuous monitoring and regular audits. Moody’s Gridfind offers support to the insurance sector by providing sanctions list screening and real-time monitoring. Prioritizing sanctions compliance helps insurers safeguard their operations and maintain trust with clients and stakeholders.