E-signature software has become a very popular technology across a large scope of industries, but many insurance brokers still believe many common myths that exist about technology and e-signature. E-signature in the insurance industry has also been hit with multiple misconceptions about how they work.
Here are a few of the most common e-signature myths in insurance:
1. E-Signatures aren’t protected in the insurance industry.
This is false. In insurance, protecting time-sensitive documents and maintaining confidentiality, as well as upholding highest level of security. With many e-signature vendors, SSL encryption provides a world-class level of security that insurance companies and banks need. Some e-signature vendors, such as SignNow, provide full audit trails that can securely trace back all document history and signer activity.
In addition, SignNow provides dual factor authentication, which gives insurance companies signature protection, email account protection, or online insurance account protection. If you choose an e-signature vendor with the above features for your insurance department, then your e-signature solution will actually be safer than traditional paper signatures.
2. E-Signatures aren’t as legally accepted as a paper signatures.
As an insurance professional, you understand that filing insurance claims and signing important, confidential documents are important for your business. In fact, e-signatures are a federally recognized form of signature. Backed by ESIGN Act (The Electronic Signatures in Global and National Commerce Act), the e-signature legality act states, “a contract or document can’t be denied its legal effect, validity, or enforceability just because it’s in electronic form.”
With e-signature, you can handle insurance claims and manage your private documents with confidence knowing that e-signatures are equally as accepted as traditional, pen and paper signatures.
3. Some U.S. states don’t accept e-signature, so why should my company adopt it?
This isn’t true, but it’s a very common misconception among skeptical businesses and individuals. The Uniform Electronic Transactions Act (UETA) claims that all 50 states accept e-signatures as an equally legal form of signature. All 50 states equally accept e-signature as just as legal as physical signatures; the UETA was created to unite regulations for e-signature across America. However, Washington, Illinois, and New York have yet to sign the act. Despite this, these three states simply passed their own laws validating the legality of e-signatures.
In the insurance industry, signing, mailing, faxing, and managing physical documents takes time. However, with e-signature, moving your insurance tasks online can help streamline the workflow process, and make your insurance firm stand out among the rest. Get educated on e-signatures, and adopt an e-signature solution today.