In all sectors and even more so in the insurance sector, it is time for digitalization. The era of cluttering up with paperwork and many protocols is increasingly a thing of the past. Everything is accelerating, and the electronic signature is gradually replacing the written signature, while maintaining the same degree of security for the insurer and the client. But in fact, what should we retain essentially?
The electronic signature: how it works
There electronic signature promotes online subscription and therefore implies compliance with certain legal principles. This is what enables it to guarantee the authenticity and security of the documents transmitted, as well as the identity of the signatory. It is therefore in no way a process of digitizing a written signature.
Indeed, it is rather for the signatory to answer a certain number of questions of a personal nature, to generate a certificate of authentication of his identity, while preserving it from any falsification. For this, security measures are taken.
The 2 applicable security levels
The Civil Code defines, as a general rule, 4 levels of security regulating the electronic signature. All framed by law, they each represent a more or less high degree of security and apply according to the nature of the insurance contract concerned. Among these, 2 relate to the insurance sector.
Security level 1
The first level of security relates to simple distance contracts, i.e. non-life type (accidents, fires and miscellaneous risks) or supplementary health insurance. Here, the identity of the signer is not critical information. As a result, there is no need to provide sensitive documents such as a gray card. It suffices to establish a certificate of authenticity on the fly (or not to establish one at all) with a qualified timestamp, to have electronic evidence that guarantees traceability.
Security level 2
It relates to life insurance contracts, provident insurance, funeral guarantees and other similar contracts. It makes it possible to secure the types of contracts that present a significant or even systemic risk of dispute for the insurance company. For this, it will give rise to a physical meeting with a Delegated Registration Operator (DRO) in order to verify the identity document of the signatory. At the end of this face-to-face meeting, a European certificate is issued to the signatory. But what is the electronic signature for?
The electronic signature: what is the use?
The electronic signature has a bipartite utility: both for the client and for the insurer.
Usefulness for the customer
The customer benefits from a 100% digital experience. This course is translated by an online subscription process and by extension a fluid, fast, less expensive, transparent and restricted offer, that is to say with the same level of advice.
It is therefore no longer a question for him to move to a physical agency. Now, he achieves significant savings in energy and money, and benefits from considerable time savings; although he makes a subscription offering the same level of guarantee and the same advantages.
Usefulness for insurers
Insurance companies are becoming more and more attractive to prospects since they offer, thanks to the electronic signature, a simpler and more efficient underwriting process. In addition, the costs of sending documents by post are eliminated and digital platforms replace physical agencies. Great good for customers, management costs are optimized leading to a reduction in the cost of insurance services, as well as an improvement in productivity.
The 4 pillars of the electronic signature
The electronic signature is based on 4 essential pillars which constitute the security guarantees of the contractualization:
- The integrity of the signed document;
- The identity of the signatory through the KYC (Know Your Customer) process;
- Traceability ;
- The legal value.