If you’ve worked as an insurer even for a day, you know just how hectic the industry can be, especially when it comes to documents. One of the main reasons for this is that most companies still stick to the old paper-based approach, which results in slow and inefficient processes, human errors, and a confusing paper trail from lawyers, appraisals, and clients.
Thankfully, there's a better way to handle insurance documentation without losing your sanity. We’re talking, of course, about digital signatures. With their help, you can significantly streamline document workflows, enhance security, and transform the insurance experience for the better for you and your clients – all without wasting paper.
Join us in this month’s entry as we look into:
- What is a digital signature
- Benefits of using digital signatures in insurance
- 6 ways to use digital signatures as an insurer
Let’s have a look!
What is a digital signature?
A regular signature or wet signature requires you to be physically present and may be easily forged. In contrast, digital signatures use strong encryption algorithms and allow you to sign documents from any part of the globe without ever visiting the insurer’s office. In addition, each digital signature has a digital certificate assigned to it, which keeps track of any changes made to the document after it is signed. In case of any unauthorized changes, the signature will be instantly invalidated – a bit like breaking a wax seal.
Thanks to this combination of flexibility and strong security features, digital signatures have quickly become the new insurance standard and get featured on thousands of legal and financial documents each day.
Benefits of digital signatures in insurance
Digital signatures offer many key advantages to anyone who cares to integrate them into their workflow. Here is a quick overview of how they make a positive impact on the insurance industry:
- Streamlined workflows. Clients can sign documents instantly – all they need is reliable internet access. Since everything is done digitally, this also reduces human errors which could lead to slowdowns in claims, policy applications, and other key processes.
- Less printing and scanning. Digital signatures reduce the need for physical printing and scanning (though it’s still a good idea to have access to an OCR scanner). It also eliminates traditional mail channels in favor of near-instant emailing.
- Enhanced security and document integrity. Digital signatures create a unique cryptographic hash of the document so that any changes made to the file will also invalidate the signature. In addition, they prevent the signatory from denying the signature, effectively giving them the same weight as wet signatures.
- Reduce costs. By eliminating the need for printing, scanning, and physical storage, companies can save on paper, ink, and storage space, thus dramatically lowering their spending.
6 ways to use digital signatures as an insurer
Digital signatures have become the staple of this industry for a reason. Let’s review 6 unique use cases of how this popular PDF security tool helps companies succeed.
Use case #1: Simplified policy issuance
Digital signatures enable insurance companies to electronically sign and deliver policies to customers as soon as they are issued. This allows them to access their coverage details instantly, saving customers time and frustration while cutting on printing and postage costs.
Use case #2: Secure claims processing
The claims process can be stressful for both policyholders and customers since it often involves mountains of paperwork. By quickly signing and approving loss reports, repair estimates, and medical releases, policyholders can provide customers with financial support when they need it most.
Use case #3: Fast agent onboarding
Training new agents often involves a lot of paperwork, including contracts, non-disclosure agreements, and product knowledge certifications. Digital signatures can eliminate the need for physical signing of these documents. This enables new agents to expedite onboarding and allows them to sell policies and serve customers sooner, resulting in higher ROI.
Use case #4: Efficient risk management
Risk assessments are a crucial step in the insurance process. In this scenario, digital signatures are responsible for the secure sharing and electronic signing of these documents, ensuring that all client information is secure and that all involved parties have reviewed and agreed to the risk assessment findings.
Use case #5: Regulatory compliance
Certain regulations in the insurance industry might require the use of electronic signatures on specific documents, such as policy forms or disclosures. Digital signatures ensure compliance with these regulations, reducing the risk of penalties and improving brand trustworthiness.
Use case #6: Fraud prevention
When used right, digital signatures add an extra layer of security compared to traditional signatures. This is because they can detect changes in a document after it’s already been signed, which could prevent any attempts of fraudulent behavior as soon as it happens.
Final thoughts
As you can see, digital signatures are much more than just a secure way to sign documents digitally – after all, there’s a reason they’ve single-handedly revolutionized an entire industry. From enhancing security and streamlining approvals to improving customer experience and enabling paperless document organization, digital signatures are definitely here to stay and insurance companies who still stick to paper should consider investing in this technology to stay relevant, remain compliant with all regulations, and improve their customer inflow figures.
Looking for a reliable solution? PDF Extra offers you an intuitive and secure platform to digitally sign all your documents, both online and offline. It also includes other useful features like comprehensive PDF editing, file organization, built-in PDF conversion, OCR support, comments and markups and much more. Our app is available on Windows, Android, and iOS ensuring that you can always get your work done regardless if you’re in the office or on the move.