The insurance industry is rapidly adopting mobile technology as enterprise use of tablets, smartphones and phablets (fusion of smartphone and tablet technologies) becomes commonplace. In fact, Gartner estimates that enterprises will use 53 million tablets by 2016, tripling since 2013. On a daily basis, the insurance industry uses mobile solutions for policy underwriting, claims adjusting and property value estimates. And now this trend has reached insurance boards of directors–the governing bodies responsible for the company's overall directly and ultimately accountable to its shareholders. Using board portals, insurance boards are going paperless to address inefficient communications, weak document security and high costs.
An intuitive interface drives adoption by directors
Two-third of public companies report that their boards are using board portals, up from 41% in 2011, according to Deloitte's most recent Board Practices Report. While early adopters began using online board portals as early as 2003, tablets and apps have been quickly and widely adopted by a new generation of board portal users. Directors may have a personal iPad, but extending that use into the workplace presents a new and daunting challenge. For it to be effective, a board portal must not ensure a book-reading experience, but be easy to use so that fears and skepticism are quickly converted into appreciation and delight.
Insurance companies considering transitioning from paper-based or emailed-PDF process to board portals must view them as a smart investment if the solution helps directors read, annotate and engage with board materials more conveniently and securely than the status quo. Like all communication of sensitive information, the solution must be highly secure and easily accessible regardless of a director's location or access to a Wi-Fi connection. The board portal provider also should offer individualized training and seamless execution. Ultimately the portal needs to address and alleviate the crucial challenges faced by insurance company directors.
Go paperless to ease pain points
Insurance companies across the country are challenged to achieve timely delivery of board materials to directors. As a result of just-in-time delivery, directors often get limited time to review documents as thoroughly as they might like. Board books are often bulky and use a significant amount of paper, especially for highly regulated industries like insurance, and require lengthy time commitments for printing and assembly. Some companies have reported using millions of sheets of paper each year for board meetings alone.
Making board materials accessible via a portal significantly decreases the stress of compiling and sending paper files to various locations, not to mention the likelihood of packages being lost or delayed. With board portals, directors receive board books directly on their tablets or PCs once the materials are prepared. And updates can be made prior to or during the course of a meeting. With a unified sign-on feature, board members sitting on multiple boards are able to access materials without having to remember multiple passwords, addressing another longtime complaint in the industry. A customizable solution offers companies the opportunity to save time, paper and money for itself and its directors.
Mobile technology brings a secure standard
Today directors, especially those in the financial services and insurance sectors, perform their responsibilities at a time of intense regulatory change and scrutiny. Concerns about governance and compliance are top of mind. Insurance companies regularly communicate highly confidential information. Paperless board portals provide a way to provide secure access to these critical documents needed to fulfill their duties.
Capabilities in data security are continually advancing. Board portals have kept in lockstep, strengthening security processes so that information is fully password protected and data encrypted at rest, in transit and on the device itself. With stringent security measures in place, no one but the authorized director can access his or her information, and can only view materials to which they've been given access. A board portal solution enables a safe, secure means of communicating highly sensitive board materials to directors.
No two boards are alike. A multitude of factors affects board communications and meetings, including travel, frequency of meetings and specific state or local regulations. As tablets continue to rise in popularity, any insurance firm considering best practices in corporate governance and board technology should consider implementing a board portal. An effective board portal solution will provide boards with the interactive tools to efficiently streamline communications, saving costs, time and resources.
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