The whole world is going through a digital transformation and the insurance industry is no exception to this. Digital transformation and adapting to the changing landscape by leveraging technology has been a major agenda on the minds of CEOs and managers in insurance companies. Insurers relying on legacy systems, old architecture and rigid central databases to handle all their workload are seeing the competition being brought on by emerging InsurTech companies. With disruptive and innovative applications and strategies being deployed quickly into the market, InsurTech companies have managed to emerge victorious in the midst of this digital revolution. APIs have allowed InsurTech companies to provide innovative, specialised and disruptive applications to take care of the various needs of the insurance industry. APIs are essential in building an open insurance market.
What are APIs?
Before we get into the details of how APIs can benefit insurers, it’s good to have a clear idea on what APIs are exactly. APIs are application programming interfaces, in simple terms this means that APIs are basically software interfaces that allow for applications to talk to each other, making it easy for someone to connect multiple software’s and exchange data from one software to another. This is super helpful for developers as it allows them to modify and expand on software’s easily, it also makes it possible to create a software or website by making use of third party APIs.
4 Ways That APIs can benefit insurers
For insurers and the insurance industry in general, APIs can help add a lot of value. They make technology accessible, allowing for insurers to quickly onboard new services and features and ride the way of innovation that InsurTech has given rise to. Here’s how APIs can help build an open insurance model:
- Public APIs: Nowadays everyone uses technology for advice. We consult Google before going to a doctor when we show symptoms of being ill, similarly when it comes time to shop for something new, checking online for price comparison has become a norm. This is where APIs can help insurers! By building APIs or adding a third party API that allows price comparison or policy comparison features to your website/application one can attract more leads! Similarly you can list your own API on comparison websites, helping you reach out to a whole new audience!
- Data analysis: The insurance industry relies heavily on insights and data analysis for providing higher customer satisfaction, and more personalised policies and schemes. With APIs the process of data sharing becomes streamlined, insurers can now access large public data sources and use this for better insights and marketing analytics. These insights can then be used to drive digital innovation and offer a higher value of features to policyholders. For example providing weather forecast, and damage assistance for agricultural policies!
- Tech integration: User experience is consistently getting redefined with technological innovation! With APIs the next big thing in car insurance is the integration of devices that can mitigate risk and reward drivers with lower premiums based on their safety and mileage. This technology makes use of real time data and calculates premium, providing customers with a highly personalised service and ensuring people pay exactly what they should.
- Partner onboarding: Bringing more partners onboard, can be a great way to increase your revenue streams! It allows you to reach out to a wider audience. However this needs to be done with caution as partners are representing your policies and hence your brand! You need to ensure that the information they are providing to potential customers is accurate and updated. APIs can help streamline the process of onboarding new partners, and simplify the process of managing them through easier information exchange. Quickly onboard brokers, banks, travel companies and much more as your partners with the help of APIs.
APIs allow the insurance industry to expand their reach, and offers a plethora of opportunities to innovate and redefine the features and offerings being provided to customers! Get in touch with us to know more about expanding your insurance opportunities and leveraging InsurTech by using APIs!