This submit is a part of a sequence sponsored by AgentSync.
Insurance coverage is stuffed with enjoyable acronyms. So full, the truth is, 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 most recent buzzword being tossed round by tech firms, APIs are greater than a passing development. API, which stands for utility programming interface, refers to an middleman layer of software program that allows two totally different techniques to switch knowledge 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 objective of every is to present organizations a extra accessible and standardized strategy to share knowledge 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 means of a state of affairs you’ve in all probability discovered your self in earlier than: calling an Uber.
If you use a ridesharing app to request transportation, you’re interacting with an API. The Uber app connects to the web and sends knowledge like your present location and your most popular vacation spot to a server. That server retrieves the information, interprets it, after which sends related knowledge again to the app. The app then interprets this new knowledge and presents it again to you in a method you’ll be able to perceive, like by providing you with the price and estimated time of arrival on your trip.
The API comes into play as quickly as you open the request for a trip. Your request for a last-minute Uber to the airport is shipped to the API, which retrieves knowledge like present site visitors circumstances, out there drivers, and quickest routes and returns it to you in a method that makes it clear to you that you simply’re going to overlook your flight.
What are the several types of APIs?
APIs could be cut up into a number of totally different “varieties” relying on the way you categorize them. One frequent strategy to differentiate APIs is by their supposed viewers, during which case we will separate them like this:
- Public APIs: Additionally known 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: Also called inside APIs, personal APIs are hidden from exterior customers and the organizations that construct and keep them don’t share them for out of doors consumption. Non-public APIs face extra restrictions and solely approved 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 accomplice APIS, they usually aren’t out there for the general public.
One other frequent strategy to categorize APIs is by their construction. You’ll have heard of two of the most typical 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 often called SOAP, is an API construction kind that helps complicated knowledge 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 predominant variations between SOAP and REST is that SOAP APIs solely permit knowledge to be exchanged through an XML format.
A fast be aware on knowledge codecs
Knowledge codecs are guidelines for structuring knowledge 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 arrange knowledge.
Two frequent messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML gives a fancy, however free-form means to construction your knowledge, and is utilized in all kinds of various applied sciences. JSON is a less complicated format, as compared, however has change into 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 knowledge exchanges. Nonetheless, its stricter guidelines and decrease flexibility have led to its recognition lower compared to different API varieties.
What are REST APIs?
American pc scientist Roy Fielding developed the representational state switch structure, extra generally often called REST or RESTful, as one other strategy to constructing APIs. Its flexibility and talent to ship knowledge through XML, JSON, and different messaging codecs, has cemented the REST construction as a substitute for the restrictions of SOAP.
REST APIs have a wealthy ecosystem of software program tooling permitting them to be simply accessed from well-liked programming languages, like Java, C#, Javascript, and extra. The trendy tooling out there for REST APIs makes them a well-liked 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 easy methods 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 out a 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 interested by APIs, during which case I hope you’re discovering it useful. Nonetheless, it’s extra probably 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 handbook work, saving workers 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 knowledge to claims processing, cost processing, and background checks. In terms of insurance coverage, having up-to-date producer licensing and onboarding knowledge on the level of motion is a should. By leveraging APIs, carriers, companies, and MGAs can entry present knowledge when and the place they want it.
API integrations are significantly helpful to insurance coverage organizations that have already got a sturdy, extremely built-in tech stack in place. For instance, legacy carriers with bespoke techniques is likely to be reluctant so as to add one other layer of absolutely developed software program, like a standalone compliance resolution, into their tech stack. As an alternative, it might be extra environment friendly and cost-effective to string API knowledge by means of their present techniques.
Humanize your knowledge with AgentSync’s ProducerSync API
AgentSync’s ProducerSync API is a REST API that gives entry to greater than 200 knowledge factors, together with producer licensing, provider appointments, and adjuster licensing. With correct, easy-to-understand knowledge delivered straight into your present techniques, your groups can reduce 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 at this time.