Michael Laurie is vice president and co-founder of SilanisTechnology.

The insurance industry is in the midst of a shift from paper toall-electronic processes. To keep the electronic chain intact,carriers and agents are incorporating electronic signatures,particularly for new business processing. This comes in part fromthe evolving expectations of the modern customer, with demands foran experience that replaces faxes, printers and courier packageswith a simple and secure way to complete paperwork and signatureson a PC, smart phone or tablet.

Electronic signatures offer more than increased customerexperience and satisfaction—the insurance industry is embracingthis technology whether for auto and home, personal and commerciallines, or life and annuities as a foundational technology forstraight-through processing (STP).

In a recent Life Brokerage Technology Committee survey, brokersranked e-signatures as the technology initiative that would havethe greatest impact on their business. Carriers that offere-signatures also improve the business experience with agents,whether captive or independent. Transactions can be completedquickly, at the point the customer is ready to make a decision,reducing the shop-around syndrome and high drop off rates.

E-signatures also offer carriers unprecedented visibility andcontrol over the channel. For the agent, having an automated methodfor capturing signatures (either face-to-face or remote) helpsimprove productivity and shortens the time to commission payout.And both parties reduce the risks related to disputes over “Iwasn't shown that disclosure,” or “I didn't opt out of thatcoverage.”

While all parties benefit, there is the conundrum as to whoshould take the lead with e-signature technology – the carrier orthe agent? This uncertainty has unnecessarily introduced confusionand slowed adoption within the industry, specifically in theindependent agent channel. Many insurance companies do not want towait for agents to adopt e-signatures on their own and arebeginning to take steps to address the issue.

Based on interactions with the independent agent channel, thefollowing insights will help carriers improve electronic signatureadoption with agents and brokers.

Setting the Stage

The Electronic Signatures in Global and National Commerce Act(ESIGN) was signed into law more than a decade ago. However, it'sonly been over the past few years that so many e-signatureworkgroups have been formed by industry associations, includingACORD, LIDMA, IRI and LBTC. Without a clear policy in place,insurance companies risk finding themselves caught up ine-signature processes that may fail compliance regulations and lackiron-clad audit trails with data securely embedded in thedocument.

To eliminate roadblocks and hesitation over who is responsiblefor providing e-signature solutions, carriers need to make iteasier for agents to do business with them and their customers.This may include issuing guidelines or maintaining lists ofapproved electronic signature vendors for agents to use toincorporate electronic signatures into their workflow. It is thisdevelopment of clear policies that the industry needs to helppropel adoption by independent agents.

It is important to note here that ESIGN is a technology-neutrallaw that provides limited guidance around the actual implementationof e-signatures. When developing a policy around acceptablee-signatures, carriers need to ensure that all approved optionsinclude a proven method of capturing electronic evidence, securingthe entire transac­tion from beginning to end and providing controlthrough workflow rules. Should there ever be a customer dispute,carriers will need the necessary audit trail of the transaction todemonstrate what took place when in a court of law.

Directing the Scene

Often, the agent wants to make his or her own technologydecisions. They are reluctant to agree to each carrier's processbecause it requires multiple learning curves and processes. Inaddition, carriers' e-signature implementations sometimes lack theability to reconcile with agency-specific forms and marketingmaterial. This results in resistance.

Agents want to own the customer relationship and some carrierimplementations do not enable the agent to personalizecorrespon­dence. For example, if customers don't recognizenotification email as coming from the person they have built arelationship with, trust in the electronic process is compromisedand may be abandoned for a slow, inefficient paper process.

With the right carrier-portal implementation, agent pushback isminimized. For example, a carrier-built e-signature workflow canallow the agent, agency or others in the distribution chain to:

• Trigger the email notification inviting the customer to thesigning ceremony for both remote and in-person signing with thecustomer.
• Insert personalized contact information on the e-sign webscreens to increase familiarity and make it easy for customers tofollow up with questions or issues.
• Access a dashboard to monitor and manage e-signaturetransactions in real-time, including the ability to remotely guidea signer through the e-signature process step by step, ifnecessary.

Offering an electronic signature solution to agents that meetsthese needs is a competitive dif­ferentiator for a carrier. Anelectronic signature solution that is designed to meet the realneeds of the agent community demonstrates commitment andwillingness to build a lasting relationship that flourishes forboth carrier and agent. The ability to personalize data on formsand send updates, links and correspondence through the agent'semail promotes the carrier as a preferred partner.

Getting the Thumbs Up

Despite all the benefits of e-signatures, some carriers may ask,“If we build it, will they come?” Past attempts at deployingelectronic signatures and e-apps to agents have had only modestsuccess. Fortunately, this is changing for many reasons,including the pervasiveness of mobile devices in our society.People no longer need their arms twisted to adapt; today theydemand it.

Gone are the traditional barriers to adoption among independentagents; there is no investment necessary in dedicated signaturecapture pads. Today anyone can legally click-to-sign using nothingmore than a web browser. If an agent wants a hand-scriptedsignature it can be captured directly on a mobile tablet such as aniPad.

Service providers, primarily agency management systems, policyadministration, exam companies, and multicarrier e-applicationvendors recognize that you can't have e-apps without e-signaturesand now routinely offer e-signature capability as part of theirsolutions. This integrated approach is arguably the ideal middleground for both carriers and agents.

From a workflow perspective, it makes sense for electronicsignatures to be built into the new business applications used byagents on a daily basis. This approach clearly helps mediate theconcern over agents having to learn and carriers having to supportmultiple e-signature methods. Carriers can still give agents theability to choose a solution, while limiting integration and duediligence efforts.

However, the need to ensure a secure and reliable processremains important here. In the past, many service providers thatoffered electronic signatures minimized the complexity of thee-signature requirements and simply built in basic capabilitythemselves. Today, service providers have moved away from a simpleconsent checkbox and are partnering with true e-signaturevendors.

As a carrier, it is important to understand the role you play inmaking e-signature adoption a reality. A clear strategy minimizesdelay and opens the opportunity for increased revenue, improvedcustomer loyalty, and lowered operating costs.