Electronic Signatures Salvage Vehicle Pilot Case Andrew Conway Registration Operations Division CALIFORNIA DMV

Issue – Keeping Up with Changing Needs of Consumers and the Insurance Industry Online servicing Bundling transactions Electronic replacement of traditional document-based transactions Faster turnarounds

Why Is This Important? Settlement delay = cost for insurer and insured Costs drive insurer premiums and profits Settlements drive consumer activity

BPA Salvage Transactions Insurance Auto Auctions (IAA) and Copart 2008/2009 191,592 2009 /2010 197,275 2010/2011 204,726 estimated 2013/2014 217,236 estimated

What Do Increasing Volumes Mean? Significant DMV Savings – Reduced Transaction Counts Staff free for customer service Increased Costs for Insurance Companies and Salvage Pools Private Costs Drive Innovation (pressure = opportunity)

Farmer’s Insurance Pilot Program Started with Total Loss Salvage in May 2010 Expanded to Unrecovered Theft/Embezzled in September 2010 Vehicle release is integrated into insurance settlement DMV receives printed documents (no change to our processes) Customer chooses to settle electronically (about half of settlements)

Farmer’s Insurance Pilot Electronic Signatures 16,272 “Wet” Signatures May 201-April 2011 Electronic Signatures 16,272 “Wet” Signatures 20,245 Nobody really aw this coming. Prior to 2007, the biggest threat to traditional car dealers was thought to be the rise of Internet-based shopping. That turned out to be a relatively benign change to which the industry adapted relatively well. Electronic – 45%

So What’s the Plan? Recommend expansion to other companies Develop standards for electronic signature products Eliminate the paper document transfer to DMV As we mature look to move this to other workloads

Key Challenges Truth in Mileage Act – federal signature and form requirements are outdated Statutory issues – electronic signatures and form requirements Integration with other innovations such as ELT, online identity management, etc.

Contact Information Andrew Conway, Chief Registration Policy and Automation Branch 916.657.6259 aconway@dmv.ca.gov