eSignatures and Delivery in Insurance. Best Practices, Customer Experience and Updated Court Cases Session 474 IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Greetings! Chris Chandler , Director of Operations, Florida Peninsula Insurance Pat Hatfield , Partner, Locke Lord, LLP Brad DuPont , Practice Director, Solutions Group, e- SignSystems IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Insurance Companies Face rising operational costs, more demanding compliance, security requirements, and more exacting demands from customers Institutions are realizing that implementing e-signature solutions can deliver a critical competitive edge while increasing the customer service experience. Forrester 2013 IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 10k BC when “Wheels by Bruce” at the Cave Retail Store offered the first return for exchange IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 1868 the first unconditional guarantee by Watkin’s Liniment IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 1889 in Italy the royal family receives the first door-to door hot pizza delivery IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 1900s The Age of Manufacturing. Mass Manufacturing makes industrial powerhouses successful Ford Boeing GE RCA IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 1960s The Age of Distribution Global connections and transportation systems make distribution key. Walmart Toyota GE P&G UPS IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 2010 … The Age of the Customer. Empowered buyers demand a new level of satisfaction. USAA Amazon Salesforce.com IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Customer Experience Timeline 2015 Technology plays a huge part in Customer Experience IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Customer Satisfaction in Insurance On a 1,000 point scale, customer satisfaction is higher when • insurers are involved during service interactions (865) • exclusively with the broker (769). The study also finds that there is not a strong relationship between the service interactions that a customer has with their broker and a customer’s overall satisfaction with their insurer. JD Power 2014 Large Business Commercial IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW Insurance Study
Superior Customer Experience Today, customers expect seamless digital experiences that enable them to rapidly complete transactions without interruptions. The frustrations and delays associated with obtaining physical signatures negatively impact customers and can drive them to look for more convenient ways to conduct business. Forrester 2013 IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Superior Customer Experience E-signatures simplify and streamline customer-facing processes. Now with the exploding popularity of smart devices in the sales process across industries, e-signatures have become a technological imperative. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Carrier Perspective • Homeowner Insurance in the state of Florida, specializing in hurricane/wind coverage • 8th Largest carrier in the Florida with approximately 130K policies. • 6th Largest writing carrier, over 24K applications per year. Chris Chandler • Combined ratio less than 1. Dir. of Operations • Approximately 3,000 Independent Agents, no captive agents. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Business Case Prior to eSignature, we did not require agents to submit signed applications to the company. We relied on our agents to keep copies of the applications in their offices. During a routine audit of our agents, we were unable to locate 3 out of 20 applications and 7 had been signed by agents that were not appointed with our company. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Business Case Agents were trying to submit applications electronically. At first, we accepted them. But legal got involved and stated that the insured consent to sign electronically had to be between the insured and the carrier. Since the agents were using their own individual products and the agreement was between the agent and the insured, we stopped accepting electronically signed applications by our agents. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Business Case However - We wanted to increase the number of insured account registrations on our website. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Perceived Additional Benefits Eliminate lost forms and late submissions caused by the manual handling of paperwork Accelerate the signing process and improve the customer experience with immediate access to electronic forms IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Perceived Additional Benefits Reduce transaction costs through lower paper, printing and archiving Easy Preparing, Sending and Sharing Streamline and Innovate Repetitive and Common Tasks IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Perceived Additional Benefits Improve control, quality and consistency of your paperwork and contracts by ensuring everyone uses company approved business form templates Optimize workflow by automating signer reminders, time limits and workflow form sharing as soon as it has been signed and accepted IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action Agent binds policy with company and initiates the process to sign the application electronically. Agent reads some rules explaining the process and agrees to follow by them. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action Agent provides some basic information about the signers—name and email address. Agent selects from list of appointed agents and signs the document. System sends email to insured with signing instructions. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action If document not electronically signed within 14 days, signing room expires and document cannot be signed with eSignature. • Most documents signed within hours Once document is fully signed, document is secured, signing room event is archived, and document is stored in offsite location viewable by agent and insured. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action- Agent Signing Process At the option of the agent, agent can sign document immediately or sign the document later. Agent agrees to Consent and electronically signs the applications. Simple interface for the agent; one-click and the document is signed. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action- Insured Signing Process Insured receives an email with instructions on how to sign the document. Insured clicks link in email and creates an account on carrier website. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature in Action- Insured Signing Process Insured agrees to Consent Statement and electronically signs document. Insured clicks as directed, and the signing room inserts the appropriate initials/signatures. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Post Implementation Benefits Realized Agents who elect electronic signature receive a daily email listing all pending signatures and status. Electronically signed applications are immediately viewable by agents and insureds on the website and archived indefinitely in our document repository. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Post Implementation Benefits Realized When new business file is reviewed, Underwriting knows immediately the status of the application, whether signed or not signed. If electronically signed, underwriting saves time by not verifying the signature. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
eSignature – Post Implementation Benefits Realized For electronically signed applications, we know that 100% are signed by appointed agents, and we have a copy of the signed application. New account registrations on website are up 6.6% 92% of applications completed electronic signature. IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Customer Experience Patrick J. Hatfield 512-305-4787 phatfield@lockelord.com For further information/materials or to be added to our e-Matters e-mail alert, please send your request to brosen@lockelord.com IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Agenda Opening remarks Overview of laws Electronic Signatures Consumer disclosures 6-Point Risk Framework e-Payments Caselaw update e -Delivery More Q &A IASA 87 TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
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