Digitalization in Insurance: Electronic Signatures and Consumer Protection. How insurers are migrating from paper to data.

FINANCE AND BANKING / by Miguel Gallardo Guerra

The insurance sector has historically been one of the most conservative in adopting new technologies. However, in recent years, digitalization has significantly changed how insurers operate, issue policies, and interact with customers.

One of the most notable advances has been the introduction of electronic signatures in the policy contracting process. This innovation has eliminated the need to visit a physical office to purchase insurance, expanding coverage and reducing operational costs.

What legal support exists for electronic signatures in insurance?

In Mexico, the Advanced Electronic Signature Law and the Commercial Code recognize the legal validity of electronically executed acts, provided they meet certain requirements regarding authenticity, integrity, and preservation of data messages.

In practice, beyond legal validity, the use of electronic signatures in the insurance sector requires ensuring full process traceability and the implementation of robust identification mechanisms, particularly when the transaction is carried out remotely. These elements make it possible to verify who signed, how they signed, and under what conditions, reducing both operational risks and consumer-protection concerns.

In addition, CONDUSEF has issued specific guidelines to ensure that digital insurance contracts meet consumer protection standards: clarity of terms, access to digital records, and cancellation or complaint mechanisms.

Remaining challenges:

• Technological disparity: Not all insurers have the infrastructure needed to ensure secure and traceable processes.
  
• Digital literacy of clients: Many users still mistrust electronic signatures, making transparency and communication critical.
  
• Information security: Handling sensitive data requires robust cybersecurity measures.
  

At Bello, Gallardo, Bonequi y García, SC (“ bgbg ”), we’ve assisted traditional insurers and InsurTech platforms in reviewing and implementing their digital processes, ensuring that technology complies with legal standards while still protecting the user.

Digitalization doesn’t just modernize the insurance contract,  it makes it more accessible, transparent, and efficient. In a competitive landscape, that also means trust.

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