E-signature adoption is picking up steam, although this transition has taken much longer than initially expected.
Boston, MA, USA – December 31, 2007 – Despite some progress, e-signatures still have not reached ubiquity in any segment of the insurance industry. In a recent Celent survey, 62% of respondents said their companies were not using any form of e-signatures in their dealings with customers or agents. Looking ahead to 2008, most insurers have a clear opportunity to leverage electronic signatures to improve service levels and reduce costs. In a new report, An E-Signature Update for US Insurers, Celent examines the issues insurers are facing as they move toward straight-through processing enabled by process automation and the use of e-signatures.
The insurance industry is slowly dispensing the myths associated with e-signatures, and consumers and agents are starting to drive carriers toward adoption, rather than simply allowing themselves to be pushed down the e-signature path. Even though the potential benefits of e-signatures are compelling, many carriers have not pressed the issue because their peer companies have not yet done so. Celent believes that the majority of Tier 1 through Tier 3 carriers will put e-signatures in production for at least some business processes within the next 24 to 36 months. Carriers that are waiting for early adopters to work through any remaining issues before they would consider offering e-signature capabilities need to plan for this shift.
�There are tons of success stories out there,� says Craig Weber, managing director of Celent�s insurance practice and author of the report. �But many carriers have been slow to give their agents and customers an e-signature option, which severely constrains the value of any electronic processing of new business or service requests.�
�The benefits of e-signatures are too compelling to ignore,� Weber says. �Carriers that have not yet started down the e-signature path should have something planned for 2008.�
This report provides context for the continued debate over e-signatures, updating Celent�s original report on the subject which was published five years ago. The current report is based in part on a survey administered to insurance carriers late in 2007. A key finding is that a majority of carriers have not yet implemented a single e-signature option for agents or customers.
The 20-page report contains 4 tables and 10 figures. A table of contents is available online.
Celent’s service offering falls into two categories, consulting and research, each of which is dedicated to technology in the financial services industry. We help banks, brokerage firms and insurance companies use IT to enter new markets in the shortest possible timeframes. All of our services are geared towards facilitating better informed, faster decision making. For more information visit www.celent.com.