With the popularity of all things Web, geckos, and a spunky TV persona named Flo, insurers feel pressed to consider a direct-to-consumer channel if they are not yet in that market segment. The decision to distribute via multiple channels should not be made lightly. Before fulfilling the technology requirements, insurers need to address internal issues such as distributors' reaction to the threat of a new channel, managing customer experience across channels, changing roles and skills for employees, and conflicts in key performance indicators. This Research Note covers the internal assessments and technology considerations that will drive success in the direct-to-consumer channel.

Federal legislation in the United States in 2000 opened the door for electronic signatures (e-signatures) as a valid substitute for "wet" paper-based signatures. In addition to streamlining the application process, e-signature and its companion technology, secure electronic documents, create an audit trail that facilitates process transparency and regulatory compliance for product suitability. US insurers investing in straight-through processing capabilities and working with their distribution partners to facilitate e-signature technology will experience long-term competitive and operational advantage.

In 2000, US legislation was passed that made electronic documents and electronic signatures (e-signatures) equal, under the law, to their paper-based versions. With reports that processing time decreased about 50% and transactional costs declined up to 75%, it defies logic that the insurance industry has not adopted technology to support e-signature. However, the property and casualty (P&C) insurance industry has been slow to follow its counterparts in the rest of financial services. This TowerGroup Research Note explores the numerous opportunities for insurance carriers to improve operations by implementing electronic signature and secure documents technology.