4 Myths About Insurance and E-Signatures
While speaking at an insurance conference recently, I shared examples of how e-signatures are transformative because the technology now makes it possible to fully digitize the insurance sales and service process. “Imagine if tomorrow all your printers and filing cabinets disappeared,” I offered. Afterwards an agent approached me and said,
“I don’t get what the big deal is with electronic signatures, anyway. My customers don’t want that. They want to sit down with me and have me walk them through their paperwork.”
Evidently, my audience was left with the impression that digitization would replace personal service – an unhealthy misconception and common fear among seasoned insurance agents. These misconceptions often hold agents back from offering the best possible customer experience and become a roadblock to increasing their business.
Historically, the insurance business has been a personal one. Agents knew their customers well; knew their families, their businesses, their tolerance for risk. The entrance of direct writers onto the insurance scene has, indeed, changed a few things. But it bears mentioning that neither personal insurance nor more complex commercial policies have shifted significantly from the independent agent to large companies offering direct writing.
However, there remains a subset of independent agents whose resistance to the modernization of the industry keeps them from progressing and embracing the many positive outcomes associated with digitization.
Let’s debunk the four most common myths among independent agents:
Myth #1 Digital means “self-serve”
The goal of automation is not to remove human interaction; the goal is to provide a more efficient, error-free customer experience. E-signatures have been adopted across all channels in insurance, from remote call centers to face-to-face client meetings. Customers continue to call to speak with their agents; but at signature time, there is no printing, just an email invite with a link to e-sign.
Myth #2 Technology detracts from quality of service
Some agents believe that technology detracts from the quality, consultative and personalized, service upon which they have built their business. The adoption of digital processes does not dilute the ongoing value that independent agents provide; it simply modernizes the administration of paperwork. Offering specialized expertise and trusted advice will continue to play an important role in the industry.
Myth #3 Consumers aren’t ready
Simply not true. We track client preferences for e-signature automation across many mediated and unmediated channels. Mediated is when the client’s transaction is guided by a representative, offering the option for e-signature at the time of signing. Unmediated is when the consumer is online, in a self-serve situation.
In unmediated transactions, without any human prompting, it is common to see adoption rates of more than 95% for e-signatures. Consumers are indeed ready and opting for the convenience and immediacy that e-signatures provide.
Myth #4 Digital signatures are risky
The fact is, electronic signatures are more secure than wet signatures. The identity of the signer – and their intent to sign – can both be authenticated and upheld in a court of law. Digitized audit trails of e-signing mean you not only get a log of document-level activity during the signing process, but everything the signer experiences during the signing ceremony can be captured, accessed and replayed as proof of signing.
Doing Digital Right
Independent agents who embrace digital upgrades to their processes will realize five key benefits:
- Improved Customer Experience: personalized yet modern; nets better customer retention.
- Automated Expedited Business Process: requires less time to execute necessary paperwork.
- Once-and-Done: reduces errors and avoids return visits for mistakes or omissions.
- Cost Savings by eliminating paper and having more time to spend with clients.
- Enhanced Security in trusted and verifiable e-signatures.
One of the most important benefits of modernizing business systems is the ability to attract new clients. As generations shift, younger, underinsured digital millennials will open new market opportunities. Progressive, independent agents will be viewed as service providers who have kept current with the times – yet still offer industry expertise with personalized attention.
“All business models must now rely heavily on digital tools; it’s what consumers want. What’s so exciting, however, is that consumers also hunger for a trusted advisor relationship with their insurance agent. Independent agents who marry the two will be big winners in the years ahead. That’s an opportunity direct writers can’t fully execute.” Ron Berg, Agents Council for Technology