[STUTTGART / OLDENBURG] - 2008-07-14: One of the "miracles" in today's offices is the fact that despite the existence of more and more electronic forms the amount of paper work cannot be reduced substantially. This is especially true for the workflow in insurance companies where a lot paper of paper is printed for the sole purpose of capturing handwritten signatures. However it is a well-known fact that handling paper requires a lot of time and money and that capturing information from paper into electronic formats is extremely error-prone. The German insurance company VPV demonstrates that there are other ways to integrate handwritten signatures into electronic workflows. They are capturing now signatures on the display of a Tablet PC and embed them securely into electronic documents. Encrypted documents are transferred straight into the electronic archive, the signature may be verified automatically on demand. Paper is gradually phased out from the internal processes of the insurance company VPV.
Since 2002 VPV is working with the sales support system V.I.P. from BISS, as company excelling in business intelligence solutions. The application process is now end-to-end completely electronic and includes the paperless signature. Since spring 2008 the pilot of the project ELAN (ELektronischer ANtrag = electronic application) is working smoothly. After a very promising start of the pilot stage, the project partners aim to start the full roll out in quarter three 2008.
The benefits of the rolled-out solution are evident: The insurance broker benefits from an easier process for consulting and conclusion of contracts. The back office is disburdened from routine tasks. The potential for mistakes caused by transferring information from paper into electronic files is completely eliminated. The whole process is accelerated drastically. In order to use the digitized handwritten signature as a reliable proof for the signer's authenticity VPV has chosen Softpro's signature solution "SignDoc for PDF". The product has received an award as best business application for TabletPCs in 2004 in a large competition titled "TabletPC challenge". SignDoc has been integrated as a tool into the existing document process.
No contract without fully signed data package
Each insurance type (life, damage etc.) comes with a specific form package of documents required to be filled and signed. The relevant data packages of PDF forms are always available in the V.I.P. system in the most recent version. .
The solution "V.I.P. with SignDoc" ensures that all required signatures are included in the data package: The consultant opens the required data package depending on insurance type, fills in the forms with the customer and signs the relevant sections. If a data package is opened SignDoc is processing several documents as a pre-defined package for the preparation of contracts. Within this process SignDoc scans all documents for signature fields. Only if all required signatures are captured a contract is considered valid. This "package processing" is a consequence of intense workflow optimization resulting from the collaboration of VPV, BISS and Softpro. After automatic electronic forwarding of the application data full automatic processing takes place in the back office of VPV.
Best Practice in Compliance to current laws and regulations
The application also reflects the increased requirements German legislation pertaining to insurance contracts (Versicherungsvertrag, VVG). The revised law became effective at the beginning of 2008 and contains extensive information duties for the insurer and increased requirements for the quality and documentation of the consulting process. These requirements are now implemented in a way that is easy to understand for customers and cans easily be handled by the insurance consultant at the same time. The procedure is regarded as "best practice". The customer consultation process is now recorded in a written protocol significant minutes, fulfilling the corresponding regulations in an exemplary way.
Paperless signing is the icing on the cake of electronic workflows
As an elementary part of the sales support system V.I.P. the signing ceremony is a vital component and signing electronically is seen as "icing on the cake" of the digital workflow. VPV was starting quite early to migrate to an electronic workflow, being regarded as one of the most innovative insurance companies when it comes to process optimization. However as soon as signatures were involved, paper was printed to capture them. Scanning, correcting mistakes, re-capturing and archiving of the documents produced efforts in time and money. This effect of moving from electronic processes back to paper is widely referred to as "media cut". For a short time VPV considered turning down to use the common, accepted and very personal form of a proof of intent - the handwritten signature. However the search for a replacement was soon abandoned since the alternatives proofed not to be feasible. In contrary it was recognized that processing signatures effectively and full electronic offers additional cost savings potential without any hassles of switching to other means of authentication.
Digitizing Signatures at the time of signing
VPV sticks with the handwritten signature in their processes - with a major difference: Around 700 mobile consultants in the field have been equipped with professional Tablet PCs. The signature is captured on the display of these devices and instantly digitized. In conjunction with individual, biometric characteristics these signatures a so-called electronic signature is created when signing the document. The authenticity and integrity of the documents is secured with Softpro's product SignDoc. In the capturing process the software binds the data from the signature and the content of the document, encrypts the two of them and creates an integrity value which allows detecting any illegal manipulation of the document after signing. The customer may choose to receive a paper copy or a file copy on CD of his signed contract for his own documentation.
Sonja Langner is responsible for the electronic signing project at VPV and convinced about the benefits of SignDoc: "We are quite happy to summarize, that we have not only decided to choose an innovative product but also a very committed team behind it. SignDoc was integrated into our environment easily. Last but not least thanks to the professional support of the experienced project team of Softpro. We can already see in the pilot stage that this solution will be an elementary component of our contract management."
The Toshiba Tablet PC of the type Tecra M7 is one of the so-called "Penabled Tablet PCs" (In the meantime the follow up product Portégé 700 is available on the market). The term Penabled is used for devices with a digitizing technology of the manufacturer Wacom allowing a very precise data capturing. Thus this type of Tablet PC is able to capture both the static image as well as the dynamic (biometric) signals evolving from the signing process in a very reliable manner. The captured data of signatures are highly suitable for later verification of signatures thanks to the exact differentiation of pressure levels and quality of captured data.
Well worth the effort
Internal Studies of German financial institutions forecast cost savings of up to 2 Euro per document for paperless contracting. When the system is in production the price of hardware and Software amortizes in a very short time.
Trustworthy Process
Laws for electronic signatures vary around the globe. It is important to understand that laws on electronic transactions typically include laws and/or regulations on Electronic Signatures. Only in some cases separate bills/acts exist for e-signatures. At the time when the first versions of these laws were created (e.g. 1997: Germany, Malaysia; 1998: Singapore) there was no such option as a "trustworthy capturing and verification of handwritten signatures - including static images and dynamic (biometric) characteristics" that allowed creating a reliable e-signature on basis of a digitized handwritten signature ("biometric signatures") in the same manner as now introduced the at VPV. As a consequence laws usually reflect primarily on "digital signatures" (e-signatures created in a public key infrastructure, PKI). Digital signatures however can be simply considered a subset of electronic signatures.
In 1999 the European Directive about a framework for electronic signatures (1999/93/EU) opened a broader technological approach to electronic signatures. Law makers are gradually reflecting "biometric signatures" now as well. The embedding of dynamic signature as introduced at VPV results in the creation of a so-called "advanced electronic signatures".
The trustworthiness of electronic documents is closely linked to the power of proof for authenticity and integrity in the particular application and workflow. In addition to the option to verify the dynamic signature, this form of signature includes encryption and the option to check that a document has not been tampered with (integrity check). SignDoc uses a hash code comparison. Thus it is possible to detect any manipulation of a document after it was signed. Another important aspect is to ensure that the customer's signature is securely tied to the signed document A document is flagged as invalid, if signature data are manipulated. In addition to this signature data cannot be transferred to other documents undetected.
The trustworthiness of Softpro's solutions is backed by expertise of Professor Dr. Thomas Hoeren , Head of Civil Law Department, Judge for Multimedia Law at the High Court of Duesseldorf and Head of Institute for Information-, Telecommunication- and Media Law (ITM) at the Wilhelms-University of Muenster: "Signing with SignDoc offers a legal surrogate equivalent to the conventional method of signing with ink on paper and thus similarly fulfills the same formal intention to sign of the written paper form." In other words Hoeren's summary reads in simplified wording: "Electronic signatures based on SignDoc offer at least the same security as handwritten signatures on paper".
These kinds of "advanced electronic signatures" may be used in all processes that do not require a written form according to paragraph 126 of the German Civil Code. The processes are regarded as "form free". Leading experts of the German Federal Ministry of Economics and Technology assume that around 98% of all business process are suitable for this kind of e-signing - for example the application for an insurance, opening of a bank account, rental car contacts or the service protocols as well as receipts for delivery.
Sonja Langer of VPV was pondering intensively over a lot of questions of usability and security. "We have tested almost any relevant hardware and software before we decided to choose our solution. One of the most important aspects was that we have been sick of these compromise solutions that display crappy and ugly signature images on some of these scribble boxes. These mediocre solutions are a familiar sight in banks and at the POS in the United States but could not convince us at all. From our point of view it is also ill-conceived to expect the mobile sales force of an insurance company to carry around an additional external signature capturing device. An integrated solution with an appropriate Tablet PC for signature capturing is the logical choice."
System Integrators testimony SignDoc to work great
Jan Mazac of BISS sees SignDoc as a product, system integrators like to see more often: "I was positively surprised how easily and smoothly Softpro's software could be integrated in our existing system environment. The mature product is almost self-explaining and accompanied with an extensive and accurate documentation. Last, but not least I'd like to highlight the very short response time of Softpro's dedicated support. The collaboration has been exemplary so far."
More intense verification possible
Ralph Maute, Product Manager at Softpro: "SignDoc offers our customers, among them several insurance companies such as VPV, the opportunity for a gradual increase of their security levels. Besides the static image of the signature that is familiar to everyone from paper the Tablet PC captures also dynamic signals. These signals are created throughout the signing process and may be used as additional security features. The different levels of the writing pressure, speed and velocity throughout the writing process are very unique to the individual signer. They may be verified automatically on demand."
Although every signature is unique in itself and the image of a signature varies it is possible to compare two signatures if they are produced from the same person. Softpro is the only vendor that is intensively involved in the German Institute for Standardization (Deutsches Institut für Normung, DIN) - the national body of the International Standardization Organisation (ISO). The Standard "ISO/IEC 19794-7: Biometric data interchange formats - Part 7: Signature/Sign Time Series Data" was largely influenced by Softpro's experience in research and development.
The Customer
Vereinigte Postversicherung VVaG (VPV)
www.vpv.de
VPV was founded in 1827 as friendly society for the post and telecommunication sector. After several mergers today's VPV with headquarters in Stuttgart and Cologne was founded. The VPV is organized as a benefit society. Below the holding the life insurance corporation and the "VPV Allgemeine" is organizing the active section. Almost 70 % of the customer base is related to the post or telecommunication sector. The company employs around 600 office workers and 700 mobile sales workers. All over Germany 2000 part-time intermediaries are also selling VPV's product range. Though its subsidiary "Vereinigte Post. Die Makler AG" VPV also is engaged in the market of insurance brokers. The VPV is one of the medium sized insurance companies in Germany with a balance sheet total of more than 8 billion Euro.
Mittlerer Pfad 19
70499 Stuttgart
Germany
Press Contact:
Mr Heiko Scharrer
Phone: + 49 (711) 13 91-21 67
Fax: + 49 (711) 13 91-20 70
Heiko.Scharrer@vpv.de
The Project Partners
BISS GmbH
www.biss-net.com
For around 15 years BISS is developing systems to support the mobile sales force (exclusive agents , brokers, multiple agents) of well known insurance companies. From the beginning of the PC-era with decentralized systems and based on a broad knowledge base of current standards and features of the internet the integrated e-business platform B-Wise was developed. The platform is geared to fulfill the requirements of insurance companies and consists of various modules which can be combined together. In connection with B-Wise BISS is offering single modules, the complete framework, project services based on the B-Wise framework and accompanying consulting services. BISS also offers outsourcing services for the introduction and operation of systems.
Marie-Curie-Strasse 4
26129 Oldenburg
Germany
Mr Carsten Schreiber
Project Manager
Phone +49 (441) 36 10 76-0
Fax: +49 (441) 36 10 76-99
info@biss-net.com
SOFTPRO GmbH
www.softpro.de
Klaus Steinen
Key Account Insurance Vertical
kst@softpro.de
John Nichols
Project Manager
