The insurance industry has been and will likely always be a document-heavy realm. Applications to obtain insurance coverage are lengthy, insurance policies tend to be voluminous, and the rules and regulations relating to insurance documentation requirements and record retention are rigorous. In the past, paper copies of insurance-related items had to be circulated for signature, and the final hard copy eventually made it into a filing cabinet tucked away in an office or warehouse. Fortunately, this is no longer the case.
Paperless transactions are mainstream in just about every industry now, including the insurance sector. These days, insurance providers must engage in online document management and permit e-signature if they wish to remain competitive within their market. Here is why utilizing this sort of technology is an absolute necessity.
As mentioned, insurance companies used to print and mail paperwork to their clients to obtain the requisite signatures. This meant closing deals took at least one week or longer, and with inevitable delays due to delivery disruptions and misplaced documents. Now, with the ubiquity of e-signing software, documents that must be signed by another party can be sent and reviewed instantly via email. Most e-signing providers allow for these electronically delivered items to be accessed via any electronic device, including cell phones. This means a deal that used to take a week or more to finalize can now be negotiated and closed on the same business day.
Regardless of how a deal is handled, an actual person usually has to initiate, monitor, and close the process. Of course, by using an online system with e-signing capability to manage the deal process, the margin of human error is drastically reduced. With electronic document management and signatures, there is a very slim likelihood that documents will be misplaced entirely, sent to the wrong address, or end up in a pile on someone’s desk. Automated notifications and online document tracking help ensure that the person responsible for closing a transaction will be aware of the deal’s status at all times. This obviously contributes to improved productivity and faster closings.
Improved productivity and faster closing times will inevitably lead to increased revenues. By implementing an online document management system, insurance providers can initiate and close more deals and spend more time establishing relationships with prospective clients. Plus, allowing for the required paperwork to be signed electronically means fewer resources are wasted on paper, ink, and postage, savings which will ultimately bolster annual profits and revenue.
Convenient for Clients
Finally, in addition to the financial and operational benefits to insurance companies, utilizing electronic documentation and e-signatures is far more convenient for clients. Clients will no longer have to wait for packages to be delivered, rifle through papers searching for signature lines or spend time in the post office line to return their signed documents. Instead, clients can quickly scan, sign, and immediately retain a copy of their important insurance documents.