What factor does NOT significantly contribute to money laundering in the insurance industry?

The presence of a central regulatory body is not a significant contributor to money laundering in the insurance industry because such a body typically implements oversight and regulatory measures designed to mitigate financial crimes, including money laundering. A well-structured regulatory framework aims to ensure compliance with anti-money laundering (AML) laws and to enhance transparency within the industry.

In contrast, the reliance on agents for conducting business can create opportunities for money laundering as agents may lack the necessary oversight and controls. The lack of direct client contact can further complicate the verification of client identities and the sources of funds. Lastly, the variability of state regulations can lead to inconsistencies in compliance practices, making it easier for illicit activities to occur. Hence, a central regulatory body serves to strengthen defenses against money laundering rather than contribute to the problem.