Updated: May 6, 2022
As the insurance industry has started taking advantage of digitalization, it has become essential for agents and agencies to understand how technology solutions play an important role in the growth and scaling up of their business.
API (Application Programming Interface)
API (Application Programming Interface)is one such particular tool that can easily be plugged into your existing website to enhance product and service offerings and increase customer engagement without investing much money. Danip Technologies specializes in custom APIs for insurance businesses. API should not be confused with another type of API - a professional certification that stands for Associate in Personal Insurance. API is a small piece of code, once integrated with your web application, it'll work behind the scene to connect insurance-related services and facilitate them to communicate with each other for faster processing of data. As an example, it can fetch data and display quotes from various providers onto a third-party platform, which eventually helps in connecting to other B2B insurance platforms/businesses and in scaling up their businesses.
Irrespective of the recent technological advancements across most industries, insurers are still familiar with performing business activities by worn-out methods and technologies, which have become ineffective and slow. Indeed, even today, most agents retrieve quotes, fill inspection requests manually in an old-fashioned way – by connecting to carriers exclusively, either by phone, fax, or by manual data entry to fill different request forms. These conventional and manual methods of exchanging data and information are ineffective for both agents and carriers. Agents burn through enormous measures and find themselves wasting tons of time requesting, waiting, and retrieving quotes and other information from carriers. And carriers also have to answer back to those requests on an individual basis. This is often leading to time consumption, slow response time, which further restricts/limits the scaling possibilities. So, despite an urge to stick to old tools and technology, switching to newer tools and techniques is imperative for the advancement in daily business processing.
APIs-A latest technology tool
APIs, on the other hand, permit two applications or web programs to communicate by displaying quotes from multiple providers onto a third-party platform. because the presence of insurance API and different sectors develops, so do the use cases. Whenever an insurance broker or organization desires to tug out data and information from one system to a different, APIs could potentially be used. After trying and testing manual scraping for a few years, it’s no wonder that carriers are switching to the newest solutions that are speeding up the business operation. A big number of insurance companies have learned the advantage of APIs as a smart tech tool, and have invested heavily in them.
IT-based alternative solution
After the arrival of information technology in the early ’90s, web developers introduced web scraping techniques to exchange data or to pull information from other websites. Web scraping is the process of using bots to tug out data and content from websites. It extracts the underlying HTML code and alongside it stores the info in a database.
This method evaluates the manual knowledge to a particular extent. However, scrapping has been said to have safety and reliability issues. Firstly, because bots often get blocked at any time either accidentally, or by the safety mechanism of the partner company. Secondly, there are instances of unexpected errors when trying to fetch the info from the business partner's website.
Type of API
API mainly fall into four major categories:
1. Data Aggregation
A data aggregation API pulls in data from a research organization to the insurance agent’s targeted landing page. The API could also be utilized to point out business measurements like small business growth to help with showing entrepreneurs why they could protect their organization from startling dangers that would disrupt their business development.
Some other form of API may be a Workflow API that usually desires to automatically send email to an insurance dealer, notifying them while someone fills out a form on their website.
E-commerce API wants to integrate MasterCard processing capabilities onto an agent’s policy checkout page, rather than sending the customer to a different website.
A quoting API is often used to display policy quotes from various insurance carriers at one specific location.
Advantages of using APIs for insurance
1. Automation - with APIs, computers can manage the work rather than people. Through APIs, agencies can upgrade workflows to make them more faster and productive.
2. Application - Due to APIs' ability to access the app components, the delivery of services and knowledge is less difficult and versatile.
3. Efficiency - at the purpose when access is provided to an API, the content created is often published automatically and is accessible for each channel. It permits it to be shared and distributed more with no problem.
4. Integration - APIs permit content to be installed from any site or application with no problem. This ensures more fluid data conveyance and an integrated client experience.
5. Personalization - Through APIs, any client or organization can customize the content and services that they utilize the foremost.
6. Adaptation – needs change over time and APIs help to raise expected changes. When working with this technology, information relocation is supported better, and therefore the data is looked into all the more intently. To place it plainly, APIs make administration provision more adaptable.
Who uses an API for insurance?
1. Carriers - Insurance Carriers may utilize an API to allow third-party agents to effectively acquire policy quotes. we can get quotes from different carriers Rather than a carrier handling manual requests for quotes, APIs are often used to automatically show quotes and permit clients to get them while on different sites.
2. Agents - Insurance agents can utilize APIs tons of the way, using chatbots and cloud storage for customer records. Insurance agents can likewise utilize APIs to help with developing their insurance business by utilizing social media APIs to tug in numerous pieces of advertising information into one easy-to-manage location.
3. Insurance Partners - APIs also can be employed by various insurance firms and other partners that help the insurance industry, like customer management, data analytics, etc.
How is the API used in insurance?
With so many different uses and users of the Insurance APIs, they will be used in many ways. Public: Available to anyone who can use it Partner: Only given partner selection Private: For internal use Insurance companies use mainly private APIs This is very useful for individuals, groups, or organizations who do not want their API to be publicly searched on the Hub. This is because the API continues to be built, or because the API is not designed for a wider audience. Private APIs are not searchable on the hub but are available to the team or individual owner of the API. are available to any user, group, or organization invited to the API. For those who are new to this technology, starting with partner APIs is often a thank-you note. Using tools like Wheelhouse can help you use APIs without doing any work. The integration of the platform allows insurance agencies to adhere to the transcripts of senior carriers. This makes it easy to deliver binding quotes to their customers quickly and effectively. Agents can also increase their digital distribution and grow their business by sharing the program on their marketing channels. It works much better and is more expensive than trying to create an API and connect individually to all the carrier companies.
Finally, insurance APIs can make selling insurance easier. this enables carriers to visualize a higher ROI for their investments, and agents can automatically draw information from multiple sources instantly, saving time, money and building smoother, better, and more complex customer relationships
4 Benefits of API
Automation: with APIs, computers instead of humans can manage the task. With APIs, agencies can update workflows to build them faster and more productive.
Application: because APIs can access in-app objects, service delivery and information are flexible.
Integration: APIs allow content to be embedded from any site or application easily. This ensures the delivery of fluid information and an integrated user experience.
Adaptation: changes are needed over time and APIs help anticipate change. When working with this technology, data migration is better supported, and data is highly updated.
Our Final Words
The sheer versatility that APIs offer in the their fields of application is reason enough to warrant them a place in the Insurance Business tech.
APIs offer so much more than just their versatility. Be it in efficiency or integration, APIs give the business an upper hand in all aspects imaginable.