How is digital transformation changing insurance companies from Spain? Why should we include the digital signature in this change? What are the advantages of adopting the digital signature?
The world of insurance is known for its ability to serve a large part of society. In Spain, according to the latest data provided by Mapfre, in 2018 insurance grew by 1.5%, representing a total of 28,995 million Euros in insurance premiums. The best were car and health insurance.
The digital signature is one of the tools which can help to improve and modernize the world of insurance. For this reason, from this moment onwards we will be focusing on how it influences this sector.
The digital transformation of insurance companies
The world of insurance does not remain isolated from digital transformation, a process that includes all social and professional areas. When implementing digital transformation, Insurtech is the main idea when it comes to insurance companies.
Insurtech comes from the combination of the words insurance and technology, and covers both traditional insurance companies that have adopted new technologies for their business processes, as well as recent technology-based companies that are taking advantage of the digital world to offer new services to their clients.
The Fintech & Insurtech Spanish Association published Libro Blanco in June 2019, which provides an overview of the current situation of Insurtech in Spain. This book provides an outline of the sector, and how to take advantage of the opportunities and overcome barriers, which are previously described.
From the 30 proposals set out in the Insurtech White Paper, we can highlight:
- Implement a regulatory sandbox, that is, a testing environment for this business model.
- Create an Innovation Committee in the Insurance sector to help implement all proposed initiatives.
- Adapt the regulatory requirements to the features of Insurtech, accelerating their operations.
- Applying the proportionality principle in terms of regulation and supervision.
However, though insurtech is a key element in the digital transformation of insurance companies, this is not the only aspect to consider for this technological change.
If we consider the conclusions drawn by the consulting company Deloitte, this digitization will be based on 4 other pillars, in addition to insurtech:
- Social perspective: the client’s experience is especially relevant here, a user who will share through digital media his/her opinion on the service received by the insurance company.
- Use of mobile devices to sign up for an insurance or make use of the services offered, such as writing an accident report, including location or photos of the accident.
- New ways of establishing prices tailored for each client. This includes, for example, the option of studying the behavior of the policyholder by monitoring his/her actions, which can be driving, thanks to mobile devices or the Internet of Things (IoT). All of which, naturally, with the user’s permission.
- Processing large amounts of data thanks to technologies like Big Data, which will allow us to detect opportunities for new customers more efficiently.
How the digital signature contributes to the insurance world
As part of the new technological solutions, we have to pay special attention to the fact of signing insurance documents digitally, which have completely transformed the way insurance companies operate.
Naturally, the world of insurance requires an enormous amount and variety of documentation, of which we highlight the following:
- Insurance Policies: Creation, modification and cancellation of Policies.
- Acceptance and payment of different premiums.
- Managing claims.
- Commercial contracts with partners and distributors.
- Internal management documents, such as work contracts, request for funding, HR administration, rental payments related to premises and supplies, etc.
The digital signature provides a variety of benefits to insurance companies, making it a valuable resource/tool for their processes
The digital signature provides en extra level of agility when establishing new insurance policies, allowing customers to sign documents from his/her PC, mobile phone or tablet. As a result, we reduce the likelihood of the policyholder to change his/her mind, thus skipping the process of going to the building to sign the agreement.
In addition, too much documentation can lead to confusion and losses in the insurance world. Since the digital signature is inherently paperless, all the necessary documents are always readily available, preventing losses and ensuring we always have the latest version of the document.
Furthermore, by handling all our paperwork better, we have more control over each client’s situation, which allows us to offer a fully tailored service.
The digital signature will reduce errors when handling documentation, as they can be configured so that the documents cannot be signed if any spaces were left blank or they were not filled out correctly, or in the event that certain clauses were not read.
Legality is a very important issue. The digital signature can be used in trial to provide sufficient evidence to verify the identity of the person who signed the document, as well as the exact place and time of the signature.
Finally, let us remind you that we are dealing with a highly competitive environment, especially now with the rise of Insurtech companies. The digital signature is a tool which gives the brand a sense of modernity, the ability to keep up with new times as well as to be environmentally-friendly by reducing paper consumption.
We conclude this review about the contribution of the digital signature to the insurance business by mentioning the solutions that Viafirma can offer to this particular industry, simplifying the overall signing process and adding useful features that will boost the company’s efficiency.