The focus on how to better serve the modern digital consumer isan issue that is top of mind for many insurance executives andagents alike. Of course, offering the right product at the rightprice is essential for making customers happy, but improving thecustomer experience requires a more holistic approach—one thatbalances personalized service with speed and convenience. That isfar easier said than done.

One way in which best-of-breed insurance companies are improvingthe customer experience is by going digital. E-signaturetechnology, at first glance, may seem to be a small part of alarger equation, but in reality it's often the critical piece thatcan truly transform the insurance buying experience and deliverimpressive return on investment (ROI) almost immediately. Accordingto Mark Breading, a Partner at strategic advisory firm StrategyMeets Action, insurance customers expect simple, real-time buyingexperiences, just like their interactions with other industries."That is impossible to accomplish using paper documents, wetsignatures, and mail/fax, even if the rest of the process isdigital," he said.

[Related: Closing the loop in a modern insurance documentstrategy]

Going digital is key to attracting and retaining customers,especially when new entrants like Google are shaking up themarketplace. And while the tendency may be to focus on the Internetand other direct channels when thinking about e-signatures, aninnovative digital strategy is equally, perhaps, even moreimportant for traditional sales channels. Here are just a fewbenefits of e-signatures and the ways they help both direct andagency writers close the gap in the customer experience loop.

Market demand: Giving the people what theywant

Consumers have made it clear that they are ready for insuranceto catch up to the technology revolution that has taken hold ofnearly every other industry, and offer a true "omni channel"experience. When consumers are offered the option to either e-signor sign the traditional way with pen and paper, they overwhelminglyprefer to e-sign—in fact, some carriers have achieved up to 92% online adoption. E-signatures enablea paperless transaction and eliminate the hassle of askingcustomers to come into an office or go through theprint/sign/fax/scan routine.

Despite these clear facts, making the case for e-signatures ininsurance has involved a concerted effort on the part ofassociations, technology providers and more progressive carriersand agents. Some independent agents who attribute their book ofbusiness on their client relationships express concern thate-signatures and digital processes offer a less personalexperience.

(Photo: Shutterstock)

But as many insurers, including 21^st Century, AAACarolinas, Erie Insurance and agents alike have found out,e-signatures deliver the ultimate personalized and convenientexperience. They recognize that the personal touch does notnecessarily mean meeting face to face over a coffee and ahandshake—it means giving your client the ability to do businesswith you when, where and how they want. Ultimately, your insurancecustomers will thank you for giving them what they want by givingyou their business and loyalty.

In fact, one insurance carrier reports that they haveexperienced a 14% higher retention rate with customers who e-signedtheir new business policy as opposed to the traditional signingmethods. It's clear that customers are looking for a better way tobuy insurance and employing e-signatures is a win-win—customersreceive efficient and proactive customer service, while insurersincrease retention rates.

Boosting efficiency and productivity

Insurance, like other regulated industries, is mired in processand paperwork resulting in inefficiencies and a slow pace ofinnovation. When applications fall to paper for signatures, agentsor back office staff collectively spend hours printing, mailing,faxing, scanning, rekeying, shredding, indexing and managingrecords. Their time would be much better spent serving clients andgrowing their book of business.

Not only does efficiency benefit the insurance company andagent, it delights clients as well. One major automobile insurancecompany reported that the application process for new business oncetook 52 days on average—now with e-signatures, it is cut down to nomore than 15 minutes. Customers can apply, sign and complete theirapplications in one session, rather than waiting for regulatedoptions forms in the mail. A delay introduces the risk of drop-offbetween the back-and-forth of manual signatures. Consumers wantbusinesses to be fast and competent at each point of the customerengagement cycle, and if the beginning of the relationship ismarred by endless back and forth, everyone risks losing out.

(Photo: Shuttestock)

Significantly reducing errors and risk

Because the insurance industry is heavily regulated, it can betricky to deliver a faster, more efficient experience withoutcompromising compliance. Important customer records need to bereliably retained, and that important responsibility often falls onagents. When audits occur or if disputes arise, the discoveryprocess involves sifting through paper files, often in multiplelocations. The result is risk for both the insurance company andthe agent.

[Related: 8 ways that digital innovation is reinventinginsurance customer service]

By going digital, insurance companies can benefit in twoways—the first is in achieving faster processing without cuttingcompliance corners. E-signatures offer the ability to enforcebusiness rules through controlled workflow—errors and omissions areavoided from the start because packages cannot be submitted if asignature is missing. Secondly, this technology strengthens acarrier's and/or agent's compliance and legal position withtamper-evident records and detailed e-sign audit trails, showingthe entire e-sign process. For example, the electronic evidence ofe-signatures has saved carriers millions in litigationcosts and helped avoid costly penalties and settlements.

Return on investment

While customer experience may be the top driver for insurancecompanies and agents to adopt e-signatures, an added bonus is thateliminating paper from your processes provides an almost immediateROI. For example, one carrier revealed that they saved $10 for eachtransaction just from the use of e-signatures, while a privatepassenger auto insurer saved more than $800,000 within the firstyear of implementation due to reduced mailing costs and associatedback-office processing. The ROI is tangible and insurers can passthose savings on to customers, adding significant value to therelationship and increasing retention.

The insurance industry is evolving fast, driven by changingconsumer expectations and competitive pressures in the distributionchannel. It may surprise you that e-signatures offer a relativelyquick and low-cost way to make business processes more efficient,more compliant and in step with current consumer expectations. It'sa no brainer for an industry that must innovate to stay alive andcompete in a "brave new world" of insurance.

Andrea Masterton oversees e-SignLive'smarketing strategy, market awareness and demand generation withinkey industry segments, specifically insurance and financialservices. Her 15+ years' experience in the electronic signaturemarket includes producing hundreds of educational webcasts andseminars, authoring dozens of white papers as well as activeparticipation in industry electronic signature and processimprovement workgroups. Andrea is frequently called upon to presentat industry events including recent presentations at ACORD, IASA,LOMA, LIMRA, NAILBA, LIDMA, and others.