The electronic signature, or e-signature, is designed to replace the physical signature on paper forms. Progressive Direct introduced the technology to customers in 17 states and aims to make it available in all states where its insurance is offered within the year.
The move comes five years after Congress passed the Electronic Signatures in Global and National Commerce Act (E-SIGN) in 2000, which permitted the use of electronic signatures in commerce.
Buying auto insurance online is already incredibly convenient, but without the ability to sign policy forms online, at the point of sale, customers still get forms in the mail they have to sign and return to complete their purchase, said Richard Hutchinson, general manager for Progressive Direct. Being able to sign forms online eliminates most of that follow-up paperwork.
Additionally, the auto insurer said its customers can have funds automatically deducted from a checking account via the e-signature to authorize Electronic Funds Transfer (EFT). Customers can also sign forms to reject certain coverages online at the point of sale.
In a further statement, the insurer said it will work to adapt the technology to some post-sale business which may still have to be conducted by mail, such as proof of prior insurance or home ownership, and for use by the Drive Group of Progressive Insurance Companies, which sells to consumers through independent agents and brokers.
