A recent survey by LIMRA, ”Survey of tech tools: Use of e-signatures expected to increase,” reveals that 60 percent of insurance companies that sell their products through financial professionals use e-signatures. Short for electronic signature, e-signatures are used to validate that a person wrote a message, much like a regular, pen-to-paper signature.
Sometimes, in order to have an official e-signature, companies or organizations add extra levels of security to both grant and validate the person that is going to use that e-signature. This is common practice when filling out online applications.
The LIMRA survey also found that 20 percent of financial advisors plan to add this tool within a year and that 58 percent of companies use e-signatures for electronic applications.
“Prior LIMRA research has shown that consumers increasingly expect more of the process to be digital,” especially by Gen X and Gen Y consumers. And tools such as these, “Allow companies to process more business, in less time, and with more accuracy,” the report says.
Right now, the most common e-signature used is “click wrap” or what we know as the “I Accept” or “I Agree” buttons that are “clicked in the presence of a financial professional,” LIMRA says, with 52 percent of respondents saying that they use this type of e-signature. The second most common e-signature (49 percent usage) is a click wrap sent by email to the customer.
Meanwhile, 78 percent of companies said this type of signature is “very” or “somewhat successful.” However, the survey also finds that adoption among financial advisors is sometimes difficult, but with training and increasing comfort level, adoption levels should increase.
The survey polled 55 U.S. and Canadian companies on their technology usage.