Have E-Signatures Finally Arrived? An Update for Life Insurers

1. Have E-Signatures Finally Arrived? An Update for Life Insurers June 19, 2013 Karen Monks Analyst A recording of today's webinar and copy of the presentation will be available to Celent clients on our website athttp://celent.com/user/login

3. About the Study • Two surveys • 2007: 20 life insurers • 2013: 27 life insurers • Respondent characteristics • Line of business: • In 2007, 90% life/health/disability/ltc and 10% annuities • In 2013, 78% life/health/disability/ltc, 19% annuities, and 3% group/voluntary • Size of insurer

4. Does your company use any type of e-signature today in conducting business with agents or customers?

5. E-Signature Methods Used (more than one response possible)

6. If you had an e-app process that included an e-signature for your primary line of business, what percentage of your new applications could be processed with virtually no human intervention? Insurers believe a large percentage of applications can be processed STP

7. Based on your knowledge of insurance processes, how compelling are the following potential benefits of using e-signatures?

8. For carriers in your primary line of business, how does use of e-signatures in the new business process impact their competitive position?

9. If you were implementing e-signatures for a customer-facing process (e.g., completion of an application), how would you rate the following obstacles? Average ratings

10. If you were implementing e-signatures for a customer-facing process (e.g., completion of an application), how would you rate the following obstacles? 2007 2013

11. If you were implementing e-signatures for an agent-facing process (e.g., completion of appointment forms), how would you rate the following obstacles? 2007 2013

12. How likely are you to implement an e-signature process for the following functions? (Within the next year) 2013 2007

13. How likely are you to implement an e-signature process for the following functions? (Within the next three years) 2013 2007

14. Summary Benefits of E-Signatures

15. Conclusions • E-signatures have finally taken hold in life insurance. • The need to meet the demands of agents and consumers is forcing life insurers to behave like many other businesses that have adopted electronic business models. • Challenges still exist to the success of STP in life insurance • the varying adoption levels of e-applications by distribution channels • the lack of automated underwriting and policy delivery • STP is not necessary to achieve benefits from e-Signatures • Celent recommends that life insurers that have not implemented e-signatures into their processes begin the process of evaluating the benefits compared to where they are now. • The future of e-signature looks promising for both insurers using and implementing them and vendors offering them.

16. Thank you • If you have any follow-up questions about the presentation or future studies, please contact Chuck Smith at csmith@celent.com or Karen Monks at kmonks@celent.com • A recording of today's webinar and a copy of the presentation will be available to Celent clients on our website at http://celent.com/user/login