Insurers Embrace E-Signatures

By Andrew Rickard | October 09 2014 07:05AM

Electronic signatures are becoming more popular with insurance companies in the United States and Canada.

A recent survey conducted by LIMRA, a life insurance industry research organization, revealed that 60% of insurers that sell their products through financial professionals use e-signatures, and another 20% percent plan to add the tool within a year.

The survey considered ways 55 American and Canadian companies used various technological sales tools such as website capabilities, e-applications and e-signatures, and 58% of those surveyed indicated that they use applications with e-signatures.

LIMRA notes that the “I Accept” or “I Agree” buttons which are clicked in the presence of a financial professional are the most common form of e-signature, and are used 52% of the time. The second most common kind of e-signature is a "click wrap" agreement sent to clients by email, which is used 49% of the time.

"In terms of effectiveness, 78% of the companies said their use of e-signatures was very or somewhat successful," says LIMRA. "Even so, companies often struggle to encourage adoption among financial professionals, but point to training, ease of use, and increasing comfort level with the technology as factors in encouraging adoption."