The capabilities provided by today’s technology have become a game changer for many industries—including insurance. One technology that has experienced increased popularity among insurance organizations over the past several years is an application program interface, or API.
APIs allow computer programs to communicate and share information. You can think of it like a handshake between insurance companies and third-party software developers—allowing the developers to access and integrate insurance-related data and services into their own applications.
An API greatly enhances the software’s ability to interact with multiple programs across various systems and operating platforms—like a translator between two different language speakers.
For example, if you check traffic on a maps app on your phone, the maps app is likely using an API to get info from a traffic service. Your request for road conditions goes from the API to the traffic service, which then sends the info back to the maps app in a way that shows the info you need.
Application interface: Computer to computer interaction
A software program can talk to other systems by way of an API. The parameters that are passed and shared between the two systems help to define the services one system can deliver to another. The job of the API is to simplify and concentrate internal capabilities into a more accessible form that an insurance organization can use to automate a wide range of key business solutions.
Insurance API Integration
In the insurance industry, APIs provide insurance entities with a flexible and streamlined way to automate a multitude of workflow processes—without the added expense and business interruption of replacing existing systems, configuring codes or hiring additional staff.
From applications to rating, quoting, underwriting and claims management, insurance API integration is the key to unlocking enterprise-wide, out-of-the-box automation, without having to hire an army of developers—completing complex system configurations and deploying extensive user training.
3 use cases & benefits of insurance APIs
1. Improving Risk Mitigation: APIs have the ability to interact with multiple programs across various platforms, all while gathering data that can be used to identify potential exposures and risks.
For example, an API makes it possible for underwriters and claims adjusters to monitor data from smart home devices, security monitoring units, telematics, etc. API data can be used to identify and evaluate risk factors that have occurred in the past, anticipate what may happen in the future, as well as track events occurring in real time—such as a fire alert going off, moisture being detected in a building (possibly indicating a flood or water damage), or other threats.
2. Creating New Business & Service Opportunities: APIs provide insurers with the ability to connect with other businesses and organizations. By widening their reach, insurers can take advantage of new market opportunities and services to help drive more business. Moreover, providing customers with more options can help improve retention.
For example, are there emerging markets that can help grow your business that you want to tap into? What about opportunities for offering customers a variety of ancillary insurance products and complementary services? Are you interested in creating/expanding new vendor partnerships with external organizations for greater growth? With the integration capabilities provided by APIs, the ability to connect with and share data with other businesses and vendors offers endless new business opportunities.
3. Reducing Manual Processing: With everything from quotes to underwriting, and rating to claims management, APIs can automate many manual processing tasks typically performed by agencies and other insurance entities—without the disruption and expense of having to replace entire operating systems, train staff or hire an army of software developers.
For example, do you want to automate routine workflows such as renewal application processing? What about making it easy for agents to instantly run new business quotes, accelerate the submission process and instantly bind/issue coverage—24/7 and all online? Do you want your sales team to get more done in less time, creating more time for prospecting and servicing customer needs? With API insurance automation, it’s all possible.