Despite living in times of such fundamental change, the main role of insurance mediators - besides being expert advisors - is essentially a commercial one. Insurance brokerages facilitate relations between insurance companies and customers, thanks in great part to their highly personalized customer service.
Therefore, the biggest factor for having successful relations with policyholders runners is trust. The mediator is the person who explains, interprets and advises clients on the specific options that best suit their needs. Today, the most pressing need is for brokers to forge relationships of trust with their customers in a digital environment - and this in itself naturally creates its fair share of challenges.
On this subject, it is important for brokerages to make advanced electronic signatures available to their customers. Why?
This post is also available in Spanish.
Today, there are two main reasons why insurance brokers should incorporate electronic signatures into their workflow to digitize the process of signing documents:
1. Because it is a unique tool that improves customer experience...
... and allows brokers to compete at the same level as insurtech companies, offering a quality service for taking out insurance policies online.
Insurtech companies are proliferating rapidly and changing the paradigm on which the entire insurance industry had been based. These companies make the best possible use of new technologies to better approach (and meet) the demands of digital consumers, and they are able to build trusting relationships with them through exclusively online interactions.
Classification of insurtech companies presented by expert Jean-Claude Sudre in Connected Insurance as part of the Global Summit for Insurance Innovation event.
Insurtech is gradually gaining market share from large insurers and insurance brokers. Although it may not be yet obvious for many brokers that the entire sector is already in full transition towards digitization, it will only be a few years before all sales of insurance policies take place online.
To not prepare for this and carry out the type of reforms needed to adapt to the new playing field would be a mistake, since the traditional insurance broker role as we know it now is destined to fade away. The new type of insurance broker will almost certainly be digital.
2. Because eSignatures conveys confidence to policyholders
One of the challenges presented by digitization is the need to identify individuals in the online environment. After all, how can we be sure people are who they say they are during a remote transaction? There is always a risk of fraud given the ease at which individuals can use a false identity and cloned or stolen credit cards.
This risk is not only one for insurance brokers, but also for the insured parties themselves, because if brokers don’t take enough measures to help policyholders prove their identity online, how can they trust that there are not other individuals hiring policies in their name?
This risk can be greatly mitigated if clients sign insurance policies with advanced electronic signatures, such as the one offered by Signaturit. The very fact that they are advanced means that signers can be uniquely identified and linked to their signature, since specific data to prove this is collected during the signing process. This also means that any changes made to the policy after the signature is made would be detected.
Although brokers are not required by law to collect such information during the signing process, this practice transmits confidence to digital consumers, who can be assured that their transactions with these companies are taking place in secure environments in which there is no threat of identity theft.
Documents that brokerage customers could sign with advanced eSignatures:
Signaturit’s advanced signature solution also meets the two requirements that cement confidence in online transactions:
- Guaranteed privacy of information transmitted through our platform, since Signaturit complies with the world’s most advanced data protection regulations.
In addition, other features that differentiates us from other electronic signature providers is that we do not store any of the signatures made using Signaturit, meaning that each document must be signed with an original signature; it is impossible to save a PDF of your signature and paste it into another document. The latter is one of the most widespread bad practices and poses an enormous risk to the signer.
- Security, technical and legal:
- Technical security: in addition to the security of our server infrastructure (SAS 70 Type II with certification ISO 27001), we use Advanced Encryption Standard (AES) technology to protect access to documents that are sent to be signed through our platform. Our safety standards are the same as those of banks and government agencies.
- Legal certainty: the advanced electronic signature uniquely identifies the signer, unlike a simple electronic signature such as a checkbox or a PIN code. A simple electronic signature does not technically guarantee that the person who clicks on the check box or enters a PIN is who he says he is.
“Trust plays a vital role in social and economic interactions. It functions as a powerful tool in complex environments for reducing uncertainties and enabling reliance on others.
- Extract from OECD Digital Economy Outlook 2015
Incorporating a tool such as an electronic signature into the workflow of an insurance brokerage dramatically improves customer experience. It not only allows the online platform to be the common and safe place for business transactions, but it allows brokerages to offer a service that the digital consumer expects. In addition, it also puts insurance brokers on a par with the quality of service being offered by the new pioneering insurtech companies.
If you are an insurance broker and wish to see how the electronic signature works first-hand, you can take Signaturit’s free 14-day free trial that gives you access to all features on offer. For more information about the tool and how it can help your business, you can also download the following free whitepaper without the need to register on our platform.
This post is also available in Spanish.
- Signaturit’s participation at DIA Barcelona 2016.
- Interview with Jordi Rivera, CEO of DAS Spain.
- The digitization of an insurance policy buying process.