Hasn’t the internet revolutionized everything in the modern man’s life?Imagine the guys that walkedthe earth a century ago coming back to life!They would be amazed at how easy it has become for our generation to make almost every transaction in the comfort of our homes.
The list of what would wow them is endless. However, the use of Electronic Signature (E-Sign) in businesses such as Insurance would be a striking feature.
E-Signature- what is it?
Let me take you back in time. Remember how Grandpa would go all the way to the pension offices to sign for his dividends? Most of the time this involved your dad driving him for long hours to the city to get this simple task accomplished. Terrible for his health, right?
What about when mum missed picking you from school because she had been queuing at the Insurance Offices for a good part of the day, just to put her signature on the papers.
The stories of inconveniences caused by a thing as minute as a signature are limitless.
However, the e-signature has saved us this must-be-physically-signed dilemma. In layman’s language, E-Signature involves signing electronic data to show approval of a document or a transaction. This could be using a symbol, a sound, a process such as clicking on the check box, etc. to give the document or transaction a legal standing the same way the manual signature would have done. Below are a few examples of how e-signatures work.
Examples of E-Signature
Take for instance when you were creating your Twitter account. The Sign Up icon is an example of e-signature at play. The information you provided made you legally bound to the Terms & Policies of Twitter’s operation. You didn’t have to go to their offices to physically sign the agreement form.
Also, when you buy products on online markets such as Amazon or eBay, you are asked to sign the electronic pad upon accepting the order. That scribble you make consents that you agree to have done business with the store. Makes sense now,huh?
Types of E-Signature
There are various types of e-signs as outlined below:
● Click-to-sign Signatures-involves use of scanned images, tick boxes, and typed names. The documents in this type of e-sign however, lack cryptographic protection making it easier for anyone to edit the contents. This makes it unsafe to be solely relied upon.
● Basic Electronic Signatures– the signer is provided with a cryptographically protected document. He creates a digital handwritten signature using a server-held key. This ensures the integrity of the data is maintained as only the person with access to the key can make changes to the document.
● Advanced Electronic Signatures-have higher levels of security as the signer is uniquely identified and linked to the signature.
● Qualified Electronic Signatures– are AES with additional features that require the availability of a qualification certificate to use them.
Uses of E-Signature
Which documents can you sign using the e-signature?Below is a list to give you a clue of what we are talking about.
● Insurance forms, tax return documents, and bank forms
● Employee paperwork and timesheets
● Rental agreements such as lease property
● Invoices and sales contracts
● School forms
Benefits of E-Signature to the Insurance Business
The insurance industry is highly competitive and requires efficient systems that would give a company an edge over its counterparts. E-Signatures are a must-have for today’s insurance business as they reduce cost, ensure secure transactions while making the whole process very convenient. This is an important factor to consider since most insurance users are Millennials who enjoy completing every possible thing at the convenience of their couch.
They would prefer using the services of an insurance company that gives them a 100% digital experience of signing policies to one that still hangs on the traditional telephone and direct sales approach.
Insurance businesses can therefore adopt the use of e-sign software to meet the demands of this digital market. E-signatures come with a myriad of benefits both for the company and the client. Here are six benefits of using e-sign in the insurance business.
- Convenience
E-signatures are convenient as a client can sign for an insurance policy from any part of the world.
- Speed and immediacy
With E-signature, it takes barely a minute for a company to send out documents to be signed by the client. The client in turn signs and sends it back without going through the old haul of scanning. This makes the transaction swift for both parties.
- Few errors
E-signatures limit the cases of errors that occur during the signing of policies such as an insurer forgetting to fill in some details. An e-sign document can only be submitted once all the fields have been duly filled. This helps both the insurer and the insured to save time that would otherwise have been wasted on making amends.
- Increased productivity
When using e-signatures, the workload for insurance employees is reduced as they can easily send and track the progress of a policy document.
- Eco friendly
The use of e-signature greatly reduces the use of papers, ink, scanners, and printers; making them friendly to the environment. This image of a company’s initiative to protect the environment may promote its sales.
- Reduced competition
Giving a consumer a digital experience through e-signature gives an insurance business an edge over its competitors who use the traditional means. It is also less risky for a customer to change their mind and pick a competitor for policy since the time involved in the process is very short.
Conclusion
E-signatures have made the signing process extremely convenient. The adoption of this software gives a business an edge over its competitors. Insurance businesses could reap a load of benefits from using e-signs. Not only would they give the customer an amazing digital experience ,but they would also save on cost, time, and improve the quality of their work.
