This put up is a part of a sequence sponsored by AgentSync.
Insurance coverage is stuffed with enjoyable acronyms. So full, in actual fact, that we’ve written a number of items like this one and this one to attempt to cowl as many as doable. Whereas these articles offers you extra context on issues like NPNs, the NAIC, or P&C, on this article we’re discussing a more recent child on the insurance coverage acronym block: APIs.
Whereas not restricted to the insurance coverage sector, APIs are rising in popularity amongst insurance coverage and insurtech organizations, and for good motive! So, with out additional ado, let’s dive in to a dialogue about APIs together with what they’re and why they matter in insurance coverage.
What’s an API?
Whereas it might really feel like simply the newest buzzword being tossed round by tech firms, APIs are greater than a passing development. API, which stands for software programming interface, refers to an middleman layer of software program that permits two totally different methods to switch information seamlessly between them.
To simplify, APIs assist purposes to speak to one another. Whereas there are totally different API buildings (which we’ll get into shortly), the top purpose of every is to offer organizations a extra accessible and standardized strategy to share information each internally and externally.
How do APIs work?
To know how an API works with out getting caught up in a bunch of tech bro mumbo jumbo, let’s stroll by a situation you’ve in all probability discovered your self in earlier than: calling an Uber.
While you use a ridesharing app to request transportation, you’re interacting with an API. The Uber app connects to the web and sends information like your present location and your most well-liked vacation spot to a server. That server retrieves the info, interprets it, after which sends related information again to the app. The app then interprets this new information and presents it again to you in a means you’ll be able to perceive, like by supplying you with the price and estimated time of arrival on your journey.
The API comes into play as quickly as you open the request for a journey. Your request for a last-minute Uber to the airport is shipped to the API, which retrieves information like present site visitors circumstances, out there drivers, and quickest routes and returns it to you in a means that makes it clear to you that you just’re going to overlook your flight.
What are the several types of APIs?
APIs might be cut up into a number of totally different “varieties” relying on the way you categorize them. One widespread strategy to differentiate APIs is by their meant viewers, by which case we will separate them like this:
- Public APIs: Additionally referred to as exterior or open APIs, public APIs can be found to builders and customers with little to no restrictions. Take into consideration the Uber instance.
- Non-public APIs: Often known as inside APIs, non-public APIs are hidden from exterior customers and the organizations that construct and preserve them don’t share them for outdoor consumption. Non-public APIs face extra restrictions and solely licensed people can entry them.
- Accomplice APIs: Accomplice APIs are a cheerful medium, which a enterprise builds and maintains for its personal use and that of its strategic enterprise companions. Customers want particular authorization to entry associate APIS, they usually aren’t out there for the general public.
One other widespread strategy to categorize APIs is by their construction. You’ll have heard of two of the commonest API buildings, SOAP and REST; to not be mistaken for an especially simplified self-care routine.
What are SOAP APIs?
The easy object entry protocol, higher generally known as SOAP, is an API construction kind that helps complicated information exchanges. The SOAP construction is just like the founding father of API buildings. It’s older, extra established, extra clearly outlined, and extra tightly managed than different architectures.
One of many principal variations between SOAP and REST is that SOAP APIs solely enable information to be exchanged by way of an XML format.
A fast word on information codecs
Knowledge codecs are guidelines for structuring information in order that it may be saved or shared throughout totally different networks and databases. The info format dictates preset specs for the way builders should manage information.
Two widespread messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML affords a posh, however free-form skill to construction your information, and is utilized in all kinds of various applied sciences. JSON is an easier format, compared, however has turn out to be the lingua franca of REST APIs.
SOAP was one of many first standardized API codecs on the scene, and has efficiently been utilized in complicated information exchanges. Nevertheless, its stricter guidelines and decrease flexibility have led to its reputation lower compared to different API varieties.
What are REST APIs?
American pc scientist Roy Fielding developed the representational state switch structure, extra generally generally known as REST or RESTful, as one other method to constructing APIs. Its flexibility and skill to ship information by way of XML, JSON, and different messaging codecs, has cemented the REST construction as a substitute for the constraints of SOAP.
REST APIs have a wealthy ecosystem of software program tooling permitting them to be simply accessed from standard programming languages, like Java, C#, Javascript, and extra. The fashionable tooling out there for REST APIs makes them a preferred alternative for low-cost, high-reward software program.
REST APIs are generally documented within the OpenAPI format, which means builders can simply decide precisely how they work and what they do. For instance, anybody (with the technical know-how) can take a look at AgentSync’s ProducerSync API documentation and decide tips on how to use it.
Total, the principle draw of REST APIs is simply how scalable and versatile they’re. Builders can rapidly and simply combine REST APIs with their pre-existing softwares with no entire lot of added work.
Why do APIs matter in insurance coverage?
It’s doable you clicked on this text merely since you had been inquisitive about APIs, by which case I hope you’re discovering it useful. Nevertheless, it’s extra possible you’re right here to study why APIs matter, and extra particularly why they matter within the insurance coverage trade.
Talking broadly, industries throughout the board leverage APIs for digital transformation. Incorporating APIs into enterprise operations can:
- Enhance the client expertise by rising effectivity and permitting for better personalization in a corporation’s services
- Lower guide work, saving staff useful effort and time
- Save prices and downtime by eliminating the necessity to develop and/or combine purposes from scratch
Insurance coverage carriers and companies have a number of good use-cases for APIs, from compliance information to claims processing, fee processing, and background checks. In relation to insurance coverage, having up-to-date producer licensing and onboarding information on the level of motion is a should. By leveraging APIs, carriers, companies, and MGAs can entry present information when and the place they want it.
API integrations are notably useful to insurance coverage organizations that have already got a sturdy, extremely built-in tech stack in place. For instance, legacy carriers with bespoke methods is likely to be reluctant so as to add one other layer of totally developed software program, like a standalone compliance answer, into their tech stack. As a substitute, it might be extra environment friendly and cost-effective to string API information by their current methods.
Humanize your information with AgentSync’s ProducerSync API
AgentSync’s ProducerSync API is a REST API that gives entry to greater than 200 information factors, together with producer licensing, provider appointments, and adjuster licensing. With correct, easy-to-understand information delivered straight into your current methods, your groups can minimize hours of analysis and guesswork from their workflows.
Prepared to begin leveraging APIs for sooner speed-to-revenue, extra environment friendly compliance groups, and decrease enterprise threat? Contact AgentSync in the present day.