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

2. 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

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

4. 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

5. 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)

6. 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)

7. 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%

8. 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

9. 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Truth in Mileage Act – federal signature and form requirements are outdated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.

10. Contact Information
Andrew Conway, Chief
Registration Policy and Automation Branch