Digital signature is an electronic method of signing documents that uses encryption technology to authenticate the signerTMs identity and ensure that the document has not been altered. In insurance and financial services, digital signatures enable clients and advisors to complete applications, disclosure forms, and service requests remotely while maintaining legal enforceability under laws such as ESIGN and UETA. Properly implemented digital-signature systems create tamper-evident records, time stamps, and audit trails that support compliance, operational efficiency, and a better client experience.

Advisors rely on digital signatures when using e-app platforms and electronic policy-delivery systems, reducing the need for in-person meetings and paper forms. Carriers and broker-dealers approve specific vendors and workflows to ensure signatures meet legal and security standards. Compliance teams review audit trails when investigating transactions or client complaints. Understanding digital signatures helps advisors explain to clients why electronic signing is both convenient and secure and how it speeds up underwriting, issue, and servicing processes.