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Insurance coverage is stuffed with enjoyable acronyms. So full, in reality, that we’ve written a number of items like this one and this one to attempt to cowl as many as potential. Whereas these articles provides you with extra context on issues like NPNs, the NAIC, or P&C, on this article we’re discussing a more moderen child on the insurance coverage acronym block: APIs.

Whereas not restricted to the insurance coverage sector, APIs are gaining popularity amongst insurance coverage and insurtech organizations, and for good cause! 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 could 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 allows two completely different techniques to switch information seamlessly between them.

To simplify, APIs assist functions to speak to one another. Whereas there are completely different API constructions (which we’ll get into shortly), the tip purpose of every is to provide organizations a extra accessible and standardized approach to share information each internally and externally.

How do APIs work?

To grasp how an API works with out getting caught up in a bunch of tech bro mumbo jumbo, let’s stroll via a situation you’ve most likely 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 manner you possibly can perceive, like by supplying you with the fee and estimated time of arrival to 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 distributed to the API, which retrieves information like present visitors circumstances, out there drivers, and quickest routes and returns it to you in a manner 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 break up into a number of completely different “sorts” relying on the way you categorize them. One widespread approach to differentiate APIs is by their supposed viewers, wherein case we will separate them like this:

1. 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.
2. Personal APIs: Also called inner 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. Personal APIs face extra restrictions and solely approved people can entry them.
3. 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 companion APIS, and so they aren’t out there for the general public.

One other widespread approach to categorize APIs is by their construction. You’ll have heard of two of the most typical API constructions, 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 constructions. It’s older, extra established, extra clearly outlined, and extra tightly managed than different architectures.

One of many important variations between SOAP and REST is that SOAP APIs solely permit information to be exchanged by way of an XML format.

A fast word on information codecs

Information codecs are guidelines for structuring information in order that it may be saved or shared throughout completely different networks and databases. The information format dictates preset specs for a way builders should arrange information.

Two widespread messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML provides a posh, however free-form means to construction your information, and is utilized in all types 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. Nonetheless, its stricter guidelines and decrease flexibility have led to its reputation lower compared to different API sorts.

What are REST APIs?

American laptop 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 an alternative choice to the constraints 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 preferred selection for low-cost, high-reward software program.

REST APIs are generally documented within the OpenAPI format, that 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 shortly and simply combine REST APIs with their pre-existing softwares and not using a complete lot of added work.

Why do APIs matter in insurance coverage?

It’s potential you clicked on this text merely since you had been interested in APIs, wherein case I hope you’re discovering it useful. Nonetheless, it’s extra seemingly you’re right here to study why APIs matter, and extra particularly why they matter within the insurance coverage business.

Talking broadly, industries throughout the board leverage APIs for digital transformation. Incorporating APIs into enterprise operations can:

• Enhance the shopper expertise by rising effectivity and permitting for higher personalization in a corporation’s services
• Lower handbook work, saving staff beneficial effort and time
• Save prices and downtime by eliminating the necessity to develop and/or combine functions 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 terms of 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 helpful to insurance coverage organizations that have already got a strong, 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 totally developed software program, like a standalone compliance answer, into their tech stack. As a substitute, it could be extra environment friendly and cost-effective to string API information via their present techniques.

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 present techniques, your groups can minimize hours of analysis and guesswork from their workflows.

Prepared to begin leveraging APIs for quicker speed-to-revenue, extra environment friendly compliance groups, and decrease enterprise danger? Contact AgentSync right now.