2011 02 08_enabling_ins_agents_e_signatures

Enabling Insurance Agents with E-Signatures

© Silanis Technology Inc., 2008 All Rights Reserved

gFebruary 8, 2011

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Steven Leigh Tommy PetrogiannisPresident & Co-Founder

Principal Research Analyst,InsuranceGartner

President & Co FounderSilanis Technology


Electronic Signature Definition

• Three Key Definitional Elements

- Identity of signer

- Affiliation of content with the assent

- Archive and retrieval of signing event

• Electronic signature is not dependent on any single technology as long

as the characteristics are met

• Electronic signature is often stronger than paper signature


Electronic Signature Insurance Trends

• Dramatic increase in interest for insurance particularly for click to sign, digitized

signature, and voice.

• Insurers are looking at their process to combine a variety of signature

happroaches

• Hardware continues to be a barrier particularly in independent distribution and

insurers are drawn to non-hardware alternativesinsurers are drawn to non hardware alternatives

• Underwriting enables insurers to validate customer identities making insurance

a good use for electronic signature

• Existing point solutions are now being replaced by newer technology often

without dealing with adoption issues


Current Adoption Patterns

Electronic signature vendors report which business processes they have deployed for insurance customers…

Life InsuranceP&C Insurance


Electronic Signature Business Drivers

• Increased recognition that straight through processing without

electronic signature is not really straight through processing.

• Agents are beginning to push insurers for electronic business

alternatives and insurers want to be easy to do business with

• Consumers are becoming more expectant of electronic signature from

other industries and insurers do not want to be left behind

• Simplification of service transactions is growing in priority


Benefits

Electronic signatures…- Create complete straight through processing- Create complete straight through processing

- Improve audit trails and create a better understanding of agent behavior

- Improve productivity in agents’ officesImprove productivity in agents offices

- Create a better “green” footprint

- Shorten processing timesp g

- Lower costs of paper and postage

- Keeps insurers out of court

- Provide an archive of the signing ceremony

- Help to force an electronic sales process


Challenges to E-Signature Deployment

• Environmental Complexity – the existing agent environment is

extremely complex and electronic apps and e-signatures mustextremely complex and electronic apps and e signatures must

accommodate- Different products- Different channels- A wide range of technologies- Different consumer markets- Different workflows- Different locations- Online/Offline

• Ergonomic Problems with Electronic Selling – agents do not yet feel

comfortable selling from a computer or handheld device


Challenges to E-Signature Deployment–Cont’d

• Point Solutions – the existing environment already contains point solutions

which must move toward enterprise electronic signature platforms

• Lack of Integration – many existing technologies are poorly integrated,

confusing users and lowering adoptionconfusing users and lowering adoption

• Reliance on hardware-based alternatives


Recommendations

• Create solutions that support and enhance agents’ existing selling styles and

understand the complexity of the environment

• Provide training and support that change agent behaviors.

• Don’t create a usage dis-incentive by charging agents directly for use

• Create seamless integration with e-apps and other interactive technologies

• Expect to use multiple methods of signing for different channels and service

events

• Seek vendor alternatives with enterprise capabilities

• Don’t assume lack of adoption is a technology problem, address adoption issues

prior to deploying new technology


What we’re hearing from the market

• Agents are ready"We're going to lose opportunities for new business because a certain

segment of consumers out there will get turned off if they don't have thesegment of consumers out there will get turned off if they don t have the ability to transact business in that type of efficient manner,“ Tom Minkler, president of Clark-Mortenson Agency Inc.

• Customers are ready- 50% of business is originating online – carriers and agents need to be

where customers want to be served.

• Technology solutions are mature and readygy y- E-applications and e-signatures are converging - Flexible and scalable, enterprise solutions are now available

© Silanis Technology Inc., 2010 All Rights Reserved© Silanis Technology Inc., 2011 All Rights Reserved

Baseline e-Signature Requirements


E-Transaction ProcessFront Office Back Office

e-Signature Process Management

Execution

ChannelDataCapture

DocGen Ops Fulfill

Archive &Retrieve

DocumentPackage

Portal

Presentationand Review

Affirmationand Intent

Authenticationand Binding

Orchestration

CallCenter

BrokerAgent

ECM, BPMand Portal

EASDocumentPackage

Output andDelivery

CustomersPackage

BusinessApplication

DocumentGeneration

Resources Reporting Compliance

Legal

Agent

Web Self-service

Secure Capture of Data

and PortalPackage

Prepare Control Monitor

BusinessPartners

EVault

Evidence

Audit and Review and

Finance

UnderwritingBranch

BusinessPartners

p

MgmtEvidence Archiving

Silanis ApproveIt Web Server

Integration


ScalabilityChannel Harmonization

Agent channel - special considerations

Best Practices• Support agent’s current way of doing business/workflow• Choose method of signing that suits agent environment• Consider pros and cons of software vs hardware solutionConsider pros and cons of software vs. hardware solution• Leverage availability of mobile devices in field e.g. iPad, web

pad etc… • Solution must address in-person and remote signing

Things to Remember• Agent connectivity• Cost of additional software/hardware requirements• Deployment logistics

AdoptionAdoption• Begin with captive agents; begin with early adopters• Agent education & incentive programs are key• Involve agent representation in project


Method of Signing & Document Review

• Click-to-sign on agent laptopClick to sign on agent laptop

• Click-to-sign from home

• Voice signature• Voice signature

• On screen document review

P b d d t i• Paper-based document review

• Signature Capture Tablets, iPad, Playbook,

A d id Wi d 7Android, Windows 7


Off-line Support

• Capture signatures offline on agent laptopCapture signatures offline, on agent laptop

• Upload and synchronize when connected

• Continue downstream processes online including• Continue downstream processes online including

capturing additional signatures

“We go to wherever the employers are to do an enrollment. If you're in a rock quarry out in Uncertain, Texas, you just aren't going to get good Web connectivity.“ Gerald Shields, CIO, AFLAC


Hybrid Process - electronic & paperTypical usage scenarios:Typical usage scenarios:

Reinstatement of wet-ink signed documents

Provision of an opt-out option

I ti f b d ill d t d i ’ li f f i iInsertion of paper-based ancillary documents e.g. driver’s license, proof of previous insurance

Signer prints document(s) with barcode

Signer wet-signs where applicable

Signer sends by fax ancillary documents and wet-signed document(s)

Signer selects document(s) to wet-sign or opts-out of e-sign or selects fax cover sheet for ancillary document(s)

Barcode added to document(s)

Electronic fax server receives faxed document(s)

Faxed documents converted to PDF and sent to a designated mailbox

ApproveIt Web Server monitors mailbox, extracts PDF’s, reads barcode & adds document(s) to appropriate e-signature transaction

Faxed document(s) are made part of the document package & can be viewed, e-signed and downloaded

Notifications can be sent as required


User Authentication / Attribution

SMS• Unique password sent to signers via SMS text

Voice• Recorded affirmation becomes part of electronic

signature and audit trailsignature and audit trail

User ID and password• Existing credentials can be leveraged during• Existing credentials can be leveraged during

signing process

Face-to-Face• Verify credentials and sign with tablet


Weighing the Options

Pros ConsSignature Tablets • Culturally familiar • Cost

• H/ware & S/ware installation & managementg

SMS • Browser-based• Adds security to point-of-sale, click-to-sign• Becomes part of electronic

• Customer may not have cell phone

evidence• 95% of cell phones have SMS• SMS commonly used in mobile banking

B b d B ilt i t l i i d dVoice • Browser-based• Adds security to point-of-sale, click-to-sign• Becomes part of electronic evidence

• Built-in or external mic is needed

Web Pad • Simulates paper experience• Browser-based• Positive user feedback

• Cost• Wide variety of web pads on market


Flexibility for Enterprise ScalabilityData Capture Document E-Signature Processing & Storage && Validation Generation Process Execution Underwriting Archival

Channel Access Authentication Consents Presentation Affirmation Delivery

Username/Password

http://

Email

Paper-based Auth.

Screen-based ReviewSignature Pad Secure Download

p

Portal Link

Challenge/ResponsePaper-based Review

Click-to-SignPaper Copies


Use CaseData Capture Document E-Signature Processing & Storage && Validation Generation Process Execution Underwriting Archival

Channel Access Authentication Consents Presentation Affirmation Delivery

Username/Password

http://

Email

Paper-based Auth.

Screen-based ReviewSignature Pad Secure Download

p

Portal Link

Challenge/ResponsePaper-based Review

Click-to-SignPaper Copies


Case study – 2200 Life Agents

Th Ch llThe Challenge:• Field agents carrying around stacks of forms

• Paper-based life insurance applications led to NIGO submissions (50-

70%) and extended the time to issue new policies by 30-50%.

• Having to go back to the customer repeatedly (write backs) to correct

errors and omissions created a perception that the company was

difficult to do business withdifficult to do business with.

• Agent productivity affected by write backs

• Several years back, the carrier introduced e-apps but the initiative fellSeveral years back, the carrier introduced e apps but the initiative fell

short of expectations because the solution did not include e-

signatures.



S l iSolution:• e-Application by StoneRiver (desktop app on agent laptop)

• Web-based ESPM by Silanis.

• Topaz tablets

• Wireless aircards

• Agents are connected

• Ability to print review copies

• Comprehensive education, rollout and incentive plan to promote adoption

• Hard cost savings are being given back to the representatives in the form of

incentive rewards. To ensure agents make it past the initial learning curve,

incentives only kick in after six electronically completed applications.


incentives only kick in after six electronically completed applications.



R lResults:• Write-backs significantly reduced

• web based app ensures all questions are answered• web-based app ensures all questions are answered

• 15 – 20% improvements in cycle time

• Adoption better than expectedAdoption better than expected

• 45% of reps using system, 40% all apps in first 6 months

• Goal > 90% adoption in 2 yearsp y

• Reduce costs associated with paper & printing

• Improve agent productivity / new business policies per FTE (sales person)

• Capturing intent helps ensure compliance

• Elimination of duplicate data entry


• Reduced status calls from field


NEXT STEPS

UPCOMING WEB SEMINAR

Insurance use cases and solutionInsurance use cases and solution demonstration

Presenter: Yazan Alwaid, Senior Business ArchitectTuesday February 22, 2011 @ 2 pm ET


QUESTIONS?

