Electronic Signatures in P&C Insurance · E-Signature drivers and trends Electronic signature adoption in P&C is quickly reaching critical mass. Gartner predicts that the majority

Electronic Signatures in P&C Insurance

Offer customers an exceptional digital experience with e-signatures

Table of ContentsIndustry OverviewE-Signature Education 101 E-Signatures in Action: Case Studies Best PracticesHow to Get Started

Electronic Signatures for P&C Insurance Brokers, Agents and Carriers | Silanis

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Industry OverviewE-Signatures for P&C

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Electronic Signatures for P&C Insurance Brokers, Agents & Carriers

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E-Signature drivers and trends

Electronic signature adoption in P&C is quickly reaching critical mass. Gartner predicts that the majority of insurance new business applications will be submitted electronically by 2016.

Mobility is a key driver of electronic processes. Both consumers and agents are embracing mobile devices and as a result, more new business is being closed on tablets such as the iPad. Changing consumer preferences and mobility have converged with e-apps, e-signatures and automated underwriting to shape the future of insurance purchases.

Carriers, agents, producers and solution providers alike are turning to e-signatures as a key enabler of fully electronic, straight-through processing (STP) for new business applications, delivery of state-required disclosures and forms, agent appointment/licensing, policy servicing, claims submissions and appraisals.

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What analysts are saying

“The time for insurance carriers to take concerted action with an e-signature strategy is, in Novarica’s view, now. The technology, legal framework and customer expectations have all reached a point where carriers need to proceed in order to effectively and cost effectively compete in the current marketplace.”“E-Signatures in Insurance: Overview & Key Issues”,

Novarica, June 2012

Within [7] years, “...nearly every John Hancock on every policy will be scrawled on an electronic pad, signed with a mouse click or verified with a few spoken or text-messaged words...”“Sign of the Times”, Insurance Networking News,

July 2010, quoting Steven Leigh of Gartner

“Electronic signatures have secured their place as a strategic capability for insurers. From a business perspective, they are rapidly moving from a differentiator to a requisite for competitive parity in the marketplace.”

“Electronic signatures are recognized as a key strategic capability by insurance CIOs.”

“E-Signatures Planning: A CIO Checklist Executive Brief”,

Novarica, July 2013

“...enterprise architects should include e-signature as part of an overall enterprise content management (ECM) and business process management (BPM) strategy, making it a foundational technology along with records management, eDiscovery, and other content services used across all lines of business.” Forrester Research, Inc., The Forrester Wave™:

E-Signatures, Q2 2013








Eliminating the costs of transacting on paper: E-Signatures keep costs low – especially important on commodity products. A leading P&C insurer estimates it saves $10 per new business transaction based on eliminating paper, scanning and service costs. A mid-sized P&C carrier saved $800,000 in hard costs in their first year alone.

Shortening cycle times and reducing drop-off: You need to close the deal while you have the customer’s attention. That means avoiding the delays that occur when the process falls to paper for signature. Silanis customers have slashed processing times (from 52 days to 15 minutes for one carrier), while also eliminating time-consuming errors like missing signatures and data.

Mitigating legal/compliance risk: The electronic evidence captured by Silanis has saved insurance companies millions in litigation costs, penalties and settlements. One Silanis customer has deflected more than one million customer disputes with the help of our electronic evidence. Another P&C insurer turned to e-signatures to regain control over their application process and paperwork, after a $450 million class action lawsuit.

Increasing customer retention: E-Signatures make for a better customer experience. Being “easier to do business with” results in long-term customer loyalty and repeat business. One insurer experienced a 14 percent higher retention rate with customers who e-signed their new business insurance policy.

The value of e-signatures








“Independent agents absolutely need to be able to complete a sale totally electronically. Electronic signatures are essential to this model. Independent agents have to be able to offer online services to their customers to continue to compete.”

E-Signatures and independent agents

Marcia Berner, ACORD

Director of Implementation Services

For the agent, having an automated method for signing:

• Improves productivity

• Shortens time to commission payout

• Reduces risk related to disputes over “I wasn’t shown that disclosure,” or “I didn’t opt out of that coverage.”

• Provides a more convenient and efficient experience, leading to lower not-take rates, greater customer loyalty and more word-of-mouth referrals








E-Signed processes in insuranceCapture screen-by-screen evidence of exactly what the customer saw, agreed to, or opted out of

100% adoption online

75% adoption in the call center

14% increase in customer retention






E-Signature 101Frequently Asked Questions



What is an electronic signature?

An e-signature is first and foremost a legal concept. It is about having a lasting record of someone’s intent.

The US Federal ESIGN law defines an electronic signature as an electronic sound, symbol, or process attached to, or associated with, a contract or other record and adopted by a person with the intent to sign a record”.

The term “e-signature” is often confused with “digital signature”. Digital signature refers to the encryption technology used in a number of security, e-business and e-commerce applications, including e-signatures.

In short, you want an ELECTRONIC signature application that is built on DIGITAL signature security.








Is it legal?

Yes.

Today, more than a decade after the passing of the ESIGN Act, there is no longer any question about whether electronic signatures are legal. Recent legal disputes indicate that e-signatures can actually provide a stronger legal defense than is possible with paper. “Straight-through processing has become wildly popular with the growth of e-commerce, and many insurers are making the switch to electronic verification. Laws are likewise catching up, and judges across the country are now accepting digital footprints as evidence.” www.PropertyCasualty360.com

Read the article

“The digital footprint doesn’t lie.”

Frank Zacherl Partner at Shutts & Bowen LLP






http://bit.ly/18CU2vj



What do the courts say?

There have been several cases of contract disputes involving e-signatures and e-records. Most of these cases focused on whether signing intent was actually established.

One case in Arkansas (Barwick v. GEICO) questioned the validity of the UETA law. Using a click-to-sign e-signature, an insurance client had waived the minimum medical coverage on her plan. Later, after suffering an accident that caused medical expenses, the insured claimed that the e-signature was not binding because it was not “in writing” (i.e., on paper).

In a very clear ruling, the Arkansas Supreme Court agreed with the insurance company.

To paraphrase the ruling: the Court saw no conflict between UETA and the auto insurance statute and noted that the UETA could not be more straightforward in allowing an electronic record to satisfy the law that requires a record to be in writing.

In Long v. Time Insurance Company, the court ruled in favor of Time Insurance, validating the company’s use of e-signatures for health insurance contracts, with the evidence generated being deemed admissible in a court of law.

Lorraine v. Markel American Insurance Company This case demonstrates just how critical strong process evidence is. Chief U.S. Magistrate Judge Paul W. Grimm would not admit electronic records into evidence because neither party could demonstrate reliability. In fact, Judge Grimm wrote a 100-page opinion that provides guidance on the authentication and admissibility of electronically- stored evidence.








Is it secure?

Yes.

Security is always top of mind when organizations consider moving their signing processes online. To mitigate risk, Silanis provides three levels of security:

1. User authentication

2. Document authentication

3. Process evidence








Three levels of security

User authentication•Reducefraud&IDtheft Silanis offers multiple ways to verify the signer’s identity:

Traditional login /password

Secret question and answer

Third-party authentication services

SMS code

And more...

Document authentication•Providesironcladdocumentsthatmeetregulations

Silanis digitally signs and encrypts the e-signed document to produce a tamper-evident seal. If someone

attempts to make unauthorized changes after the fact, the e-signed document will be marked invalid. In

addition, it is not possible to copy and paste a signature since Silanis secures the signature blocks with digital

signature encryption. The authenticity of the document and signatures can be verified in one click.

Process evidence • Silanis is the only vendor to provide process evidence that gives you peace of mind and reduces odds of litigation and fraud

The goal of process evidence is to prove what took place during the signing process. This is accomplished by

capturing a record of all web pages, documents, disclosures, or pop-up windows that were displayed; emails

or SMS messages sent; any voice or image capture; IP address; as well as the time/date of each event.







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Common Use CasesDigital but Personal




Simple but secure click-to-sign on an insurance company website

With e-signatures, customers can complete documents over the web within seconds of getting a quote, and transactions can be closed immediately online.

Online self-serve

1

5

2

6

3

7

4

SUBMIT & FINISH

ACCEPT

From home, the prospect goes to the auto insurer’s website. She gets a quote and clicks to purchase the coverage online.

She is asked to click each signature box within the document, and a caption appears confirming “E-Signed by (name) on (date)”. Behind the scenes, the document is also digitally signed and made tamper evident.

After filling out the online application, she is asked to click “SUBMIT” to begin signing her documents electronically.

After e-signing all the required documents and accepting all disclosures, the customer is asked to click “SUBMIT AND FINISH” at the bottom of the page.

The prospect sees a screen thanking her for choosing to e-sign. She is asked to click an “I Accept” button to consent to the use of e-signatures.

The customer then downloads her new insurance policy and all e-signed documents to her computer. The entire transaction took less than 10 minutes.

A list of documents and disclosures appears and she selects the first one. It is then presented through the web browser.

SIGN HERE

E-SIGNed by Jane Doeon 2013-06-14

E-SIGNed by Jane Doeon 2013 -06-14

First Name

Date of Birth

Dodge Ram

Jane Doe

01 02 68 AB

H3

Make and Model of Vehicle

55 Days to 15 minutes

» Watch a 2-minute video now






http://www.silanis.com/resource-center/e-signature-demonstration-for-car-insurance



E-Signing a medical release form so the carrier can service the claim faster

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6 7 8

2 3 4 5CLICK HERE ACCEPT

ACCEPT

A customer has a car accident and is injured. He calls the carrier. A call center rep enters his claim into the system.

The document is presented through the web browser and the customer is asked to click the signature box to e-sign. A caption appears confirming “E-Signed by (name) on (date) ”. Behind the scenes, the document is also digitally signed and made tamper evident.

The rep explains that the carrier needs a signed release form to access the customer’s medical files. The rep asks if the customer wants to e-sign. The customer agrees.

The customer is asked to click “ACCEPT” at the bottom of the page. The release form is submitted once he clicks “CONTINUE”. This sequence of actions reinforces the conspicuous capture of intent.

The customer clicks the link and is taken to a log-in page. He authenticates himself by answering challenge/response questions and gains access to the e-sign room.

The customer receives an email so that at a later date, he can return to the carrier’s website to download his e-signed release form.

Before e-signing, the customer clicks an “I Accept” button to consent to the use of e-signatures.

The rep creates an online account with the customer’s name and emails him a link to a secure website.

E-SIGNed by John Doeon 2013-06-14

Remote claims submission2 weeks to 10 minutes








Reviewing documents on an agent’s web-enabled tablet, using the touchscreen to capture a handwritten signature image

Face-to-face e-signing

1

5

2

6

3

7

4

8

First Name

????

????

????

?? ?? ?? ??

??

The customer and agent meet face to face.

The customer reads the application documents and disclosures on-screen before e-signing.

The agent authenticates the customer by verifying his government-issued ID.

The customer draws his hand-scripted signature on the tablet.

The agent enters the customer’s application information into e-app as part of agency management system or carrier portal.

To prove it was the customer who actually e-signed (not the agent), the agent records the customer reading an affidavit. The voice recording is part of the e-sign evidence.

The agent shares his tablet so the customer can e-sign.

The agent asks the customer if he prefers to receive the signed documents through email or regular mail.

No more follow-up phone calls or repeat visits to correct document errors






E-Signatures in ActionHow others are using it



Case study: E-Signatures for online direct new business

For this P&C carrier, paper-based processing was a problem. Paperwork had to be mailed to the customer for signing. After signing, the customer would mail the completed package back. Often these documents were not returned, despite persistent follow up by the carrier, resulting in a significant amount of lost business.

According to Gartner Research, “Management determined that, to better facilitate signature compliance, it needed to devise new internal systems and processes that would assist customers in signing the forms properly (that is, in the correct field and in a timely manner) and move the company from hard copies to an electronic format.”

The carrier implemented e-signatures for all their personal home and auto insurance lines. Since 2008, the company has been using e-signature technology to close business within minutes, reduce customer acquisition costs and offset millions of dollars of paper-related expenses.

· Agents provide documents to customers over the web within 20 seconds of the customer’s agreement to purchase

· Transactions are closed immediately over the phone

· 1 million documents e-signed per year

· 75% adoption to-date in call center channel

· 92% adoption on the web

· E-Signatures save $10 per transaction








Case study: E-Signatures keep carrier out of court

Why e-signature evidence matters

One of the top auto insurers implemented e-signatures for new business applications for their online and call center channels. Adoption is over 95% online, and cycle times have dropped from 52 days to 15 minutes to close business. Just as important, the electronic evidence captured by Silanis has saved this company high litigation costs, penalties and settlements.

The carrier can attest to the fact that electronic signatures decrease the risk of legal disputes compared to the traditional paper process. This insurance company has been capturing customers’ signatures electronically in applications for the last eight years, and has only seen one case involving e-signed records go to court.

“Despite more than one million customer inquiries related to the electronic signing process, less than two dozen resulted in a lawsuit actually being filed. All except one of these plaintiffs almost immediately dropped their cases due to the persuasive electronic evidence that was captured by

the [Silanis] electronic signature system.”

Frank Zacherl Attorney for a leading P&C carrier Partner at Shutts & Bowen LLP

View the Infographic






http://www.silanis.com/data/resource/attributes/upload/E-Evidence_Infographic.pdf



Case study: Cloud e-signatures help agency process more business

Independent agency IMG offers custom insurance products spanning property, group life and personal insurance. They wanted to go paperless. To do that, IMG was looking for the most reputable, trusted, legal and secure e-signature solution available.

Today, their agents have increased efficiency simply by e-signing on the cloud instead of using paper. Documents are signed in minutes, not days or weeks. There’s no running after customers to get forms completed and there are no mistakes when documents are returned. Customers are pleased with the ease of use and praise the convenience.

At a glance

· IMG uses e-signatures for new business insurance applications

· Documents are signed in minutes – not days or weeks

· The forms come back without mistakes the first time – IMG has reduced the number of not-in- good-order policies by 90 percent

· Customers e-sign policies in minutes, reducing shop-around

· The e-signature software works flawlessly with their CRM software

· Agents are more productive

IMG needed a way to collect signatures without having to print, scan, fax and courier or deliver documentation between agents, customers and providers.







www.silanis.com

Best PracticesEase of Use, Branding, Mobility, etc.




E-Signature best practicesSilanis’ e-signature solutions for brokers and independent agents have been designed based on recognized best practices to ensure high adoption. We:

• Support your current way of doing business

• Enable you to promote your brand

• Help you strengthen the customer relationship, close business faster and accelerate time-to-revenue

• Protect you with electronic proof of everything the customer sees, signs and agrees to online

• Support agency-specific forms and marketing material

• Enable you to choose a method of signing that suits your use case

• Address both in-person and remote signing

• Allow you to e-sign, online or offline

• Support any web-enabled mobile device, including smartphones and tablets








Getting started should be easySilanis will get you up and running in no time – no matter what your needs are.

· Silanis’ electronic signature software can be deployed on-premises behind the firewall, or accessed on-demand in the cloud.

· The cloud makes secure and enforceable e-signatures available at a much lower cost. Our monthly, pay-as-you-go service can be used immediately as a standalone solution. (It’s also a fast and affordable way to demonstrate proof of concept.)

· Our software can also be quickly integrated with your core policy administration, underwriting and content management systems.

By integrating e-signing into your branded application, you can fully customize the e-signing process to fit your unique requirements. With the click of one button, document packages can be sent out to members for e-signing, and automatically returned to your file management systems.

Start Free Trial






http://www.silanis.com/e-signlive-sign-up



Look for ease of use and simplicity

· Preparing a document or form for signature is a breeze with features like drag-and-drop signature blocks and fillable text fields.

· Your customers don’t need an account to e-sign.

· Once you send them the document, yellow tabs like “SIGN HERE” and “ACCEPT” guide customers step-by-step through the document so they don’t miss any signature boxes.

“This product is used daily for thousands of signatures across our business. The ease of use is point and click, so for most of our customers it is a no-brainer, they just sign and click as if they were buying groceries.”

- Customer review www.g2crowd.com

Please sign here






http://www.g2crowd.com/products/silanis-e-sign/reviews



With the most comprehensive and secure electronic evidence, e-SignLive gives you the strongest legal protection - bar none.

· Provides dual protection by capturing both document and process-level evidence and securing the signatures to prevent tampering – no matter where they’re stored.

· Enables you to prove - without a shadow of a doubt - the exact process that was used to capture people’s signatures in documents.

· Reduces the time and cost of gathering evidence and demonstrating your legal and regulatory compliance.

· Iron-clad evidence deters legal disputes from going to court in the first place.

Why ESIGN is Not Enough

Beyond ESIGN: Evidence Considerations for Electronic Signatures and Transactions

Be sure you can prove what transpired

Read theWhitepaper

Watch theWebcast






http://www.silanis.com/resource-center/why-esign-is-not-enough-to-keep-you-out-of-court

http://www.silanis.com/resource-center/beyond-esign-evidence-considerations-for-electronic-signatures-transactions

Compliance with Guidelines & Standards



E-Signature guidelines & certifications

Silanis actively participates in a number of industry associations and steering committees focused on producing standards and educating key stakeholders, including:

· ACORD AUGIE

· National Association of Independent Life Brokerage Agencies (NAILBA)

· Independent Insurance Agents and Brokers of America (IIABA)

· Insured Retirement Institute (IRI)»View the ACORD infographic






http://www.silanis.com/resource-center/infographic-how-silanis-meets-the-guidelines-for-e-signatures-and-e-delivery-in-the-insurance-business



Partnership Excellence Award Silanis is the recipient of GEICO’s Partnership Excellence Award. The award recognizes those individuals or groups who, through partnership with GEICO, “demonstrate their dedication, customer focus and fanatical service”. Silanis earned the award based on an e-signature project that was well received by customers and had a significant impact on the business.

Novarica RAVE Award The RAVE Awards recognize solutions that deliver exemplary value to customers. They are based on user evaluations submitted through Novarica Average Customer Experience (ACE) Rankings. ACE Rankings are audited and independent, providing a transparent, unedited picture of how well a solution or provider meets its users’ needs.

94% Customer Satisfaction Wins Gold in Novarica Average Customer Experience (ACE) Rankings As a reporting of client satisfaction levels for insurance, Silanis’ ACE Ranking of Gold was compiled through surveys from Silanis’ insurance customers, asking them to rank Silanis and its e-signature solutions. The only e-signature vendor on the list, Silanis scored 94 out of 100, with staff, organization and overall customer satisfaction as our top three categories.

#1 in Customer Satisfaction Silanis earned the highest customer satisfaction marks in a recent report from analyst firm G2 Crowd, earning the status of Leader among electronic signature technologies. Silanis rated 97% in overall customer satisfaction and outperformed all other vendors with a Net Promoter Score of 88.

IBM Beacon Award for Best Insurance Industry Solution This prestigious award, which receives hundreds of nominations every year from leading industry journalists, analysts and IBM executives, recognizes the IBM Business Partner who has brought a key innovative industry solution to the insurance market.

The industry’s highest levels of customer satisfaction







www.silanis.com

How to Get StartedFree Trial




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Our small business and premium plans both offer the first 30 days free. You can then continue for a low monthly subscription fee. And because there’s no contract, you can cancel anytime.

To speak with a Silanis representative about getting started, call 1-888-SILANIS (745-2647)

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E-sign up to 25 docs per month

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Silanis is the defacto electronic signature standard in the insurance ecosystem. Our family of electronic signature solutions are used throughout the insurance industry to enable more efficient and convenient new business processing. Eight of the 15 largest insurance carriers in North America process upwards of 1 million electronically signed insurance transactions with us each year. We are responsible for processing more than 600 million documents annually for organizations of all sizes.

“Silanis is the strongest vendor with both an on-premise and a cloud offering.” - Forrester Research, Inc., The Forrester Wave™: E-Signatures Q2, 2013

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