Insurance Companies Require Electronic Signatures & Document Management

 

Insurance companies need to implement electronic signatures and document management in order to comply with regulations, but they also want to be profitable. This is difficult because of all the changes that have occurred within this climate. In this blog post, we will discuss how Insurance Companies require Electronic Signatures & Document Management.

NAIC, which is governed by insurance regulators in all 50 US states plus the District of Columbia and five total US territories, devoted a large portion of its industry report to addressing how insurance companies are striving to transcend regulatory difficulties with increased efficiency through the internet.

This is why it's vital for insurance companies to make an effort towards electronic signatures and document management. These two things, taken separately, are not enough to solve the issues which currently face insurance companies.

With the help of electronic signatures and document management, it can be easy to navigate changes in the regulatory climate.

As of February 2013, the FIO and NAIC have made new regulations relating to electronic signatures mandatory for any company doing business with these regulatory organizations.

And for the following reasons,

E-commerce and insurance have a lot of problems in how they behave.

In the last ten years, the regulatory climate has been quite significant. Over the internet to engage in some type of electronic action (signing, scanning, etc.) how standalone document management technologies might play a role or integrate with existing practices.

If this process did not take place, the sale would not be legitimate and documentable and could lead to both the agent and company he or she works for facing legal difficulties if any disputes arise.

New state regulations require more enforcement of the contractual process both on the insurers and policyholders to combat fraud. In the modern insurance climate, agents have to make tough decisions: either meet government and industry regulations sans profitability or find a way to compete with well-funded traditional competitors.

Insurance companies increasingly rely on electronic signatures and document management. Prior to the 21st century, insurers primarily relied on notaries or witnesses as intermediaries.

Nevertheless, the internet is an immensely helpful medium. The advent of electronic signatures brings into question what degree of validity insurance agents' or companies' electronically signed documents should have.

Although digital signatures are more efficient, they also could've saved American leaders from spending a day on our country's constitution., They take a long time to collect signatures and require additional authentication when done by hand. Document management can automate this process across the entire organization.

You can't get life insurance without an electronic signature and document management.

ACORD is a nonprofit organization for the insurance industry, giving standards data to ensure compliance.

The organization is currently trying to integrate modern insurances transactions with the internet. Insurance companies need electronic signatures and document management in order to keep up with an era of cloud computing document management and digital hosting. Insurance companies are considering a variety of solutions for the coming changes.

ACORD, in response, makes its forms available on their website. Electronic signatures and document management are becoming more popular with companies and customers alike.

Electronic signature technology must be added to document management solutions for the final stages of this process.

Insurance companies are struggling to stay ahead of the changes in their industry and either has to follow new guidelines that erode their profits or find ways around them.

Why Electronic Signatures are the Future of Insurance

These are the features that create a highly effective relationship between document management and electronic signature capabilities.

Authentication Procedures

Digital signatures are necessary to authenticate documents and require a KBA challenge question. The electronic signature ensures that the person signing a document is who he or she says they are.

IP Address Verification

Insurance companies can manage electronic records and signatures in order to be compliant with new regulations. A digital signature system, which is a basic requirement for electronic signatures in most enterprise solutions, is a layer of electronic verification that can protect a signed document from being contested in the event of a legal dispute.

Form Fill Automation

For the modern insurance industry climate, there are new and exciting ways for agency producers to automate form-filling processes. Eliminating manual processes and reducing document workload give Zonal OCR the platform they need to deliver a solution without sacrificing profits.

Bar Code Authentication

A bar code in an electronic signature should never make up for this. Electronic signatures reduce the risk of fraud. Although a barcode might seem like a lot of other stamps, it's unique in that it reveals who made the barcode, where they made it, and what purpose the stamp aims to serve.

A document's barcode is to document what DNA is to a human being. DNA testing is the only way to verify an action's culpability; if we did not have DNA testing, a lot of criminals would be running amok. If we didn't have barcode signatures for digital documents, it would be easier to forge documents.

Why Insurance Companies Need Electronic Signatures and Document Management: Preserving Data in Documents

The modern insurance industry is struggling to deal with the many regulatory changes occurring in the past ten years. It's apparent that document management will be an enterprise-wide issue when it comes to getting a handle on electronic signatures, as these technologies help to protect documentation and, therefore, the validity of any specified contract.

In addition, a document management system is capable of tracking, which changes what with the ability to assign role-based access permissions. It is important for insurance companies to protect themselves by having legal protection in place in the event that a data breach occurs.