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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 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 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 could really feel like simply the newest buzzword being tossed round by tech firms, APIs are greater than a passing pattern. API, which stands for utility programming interface, refers to an middleman layer of software program that allows two completely different methods to switch knowledge seamlessly between them.

To simplify, APIs assist purposes to speak to one another. Whereas there are completely different API buildings (which we’ll get into shortly), the tip purpose of every is to present organizations a extra accessible and standardized approach 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 way of a situation you’ve most likely discovered your self in earlier than: calling an Uber.

If you use a ridesharing app to request transportation, you might be 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 possibly can perceive, like by providing you with the fee and estimated time of arrival on your experience.

The API comes into play as quickly as you open the request for a experience. Your request for a last-minute Uber to the airport is distributed to the API, which retrieves knowledge like present site visitors circumstances, accessible drivers, and quickest routes and returns it to you in a method that makes it clear to you that you just’re going to overlook your flight.

What are the several types of APIs?

APIs could be cut 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, by which case we will separate them like this:

1. 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.
2. Non-public APIs: Also called inner 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 approved people can entry them.
3. Companion APIs: Companion APIs are a contented 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, and so they aren’t accessible for the general public.

One other widespread approach 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 a particularly simplified self-care routine.

What are SOAP APIs?

The straightforward object entry protocol, higher referred to as SOAP, is an API construction kind that helps advanced 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 by way of an XML format.

A fast observe on knowledge codecs

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

Two widespread messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML affords a posh, however free-form potential to construction your knowledge, and is utilized in all types of various applied sciences. JSON is an easier 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 advanced knowledge exchanges. Nonetheless, its stricter guidelines and decrease flexibility have led to its recognition lower compared to different API sorts.

What are REST APIs?

American pc scientist Roy Fielding developed the representational state switch structure, extra generally referred to as REST or RESTful, as one other method to constructing APIs. Its flexibility and talent to ship knowledge 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 accessible 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, 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 learn 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 with no 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 by APIs, by which case I hope you’re discovering it useful. Nonetheless, it’s extra possible you’re right here to be taught 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 growing effectivity and permitting for better personalization in a company’s services
• Lower guide work, saving workers beneficial 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, fee processing, and background checks. In the case 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 useful to insurance coverage organizations that have already got a strong, 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 absolutely developed software program, like a standalone compliance resolution, into their tech stack. As an alternative, it could be extra environment friendly and cost-effective to string API knowledge by way of their present methods.

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, service appointments, and adjuster licensing. With correct, easy-to-understand knowledge delivered straight into your present methods, 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 present.