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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 try 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 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 most recent buzzword being tossed round by tech corporations, APIs are greater than a passing pattern. API, which stands for software programming interface, refers to an middleman layer of software program that permits two completely different methods to switch knowledge 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 top objective of every is to provide organizations a extra accessible and standardized solution 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 state of affairs you’ve in all probability discovered your self in earlier than: calling an Uber.
While 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 info, 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 approach you’ll be able to perceive, like by providing you with the fee 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 knowledge like present visitors situations, accessible drivers, and quickest routes and returns it to you in a approach that makes it clear to you that you simply’re going to overlook your flight.
What are the various kinds of APIs?
APIs may be cut up into a number of completely different “sorts” relying on the way you categorize them. One frequent solution to differentiate APIs is by their meant viewers, wherein case we are able to 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: Also called inner APIs, personal APIs are hidden from exterior customers and the organizations that construct and keep them don’t share them for outdoor consumption. Non-public APIs face extra restrictions and solely licensed people can entry them.
- 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, they usually aren’t accessible for the general public.
One other frequent solution 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 a particularly simplified self-care routine.
What are SOAP APIs?
The straightforward object entry protocol, higher often known as SOAP, is an API construction sort that helps complicated knowledge 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 essential variations between SOAP and REST is that SOAP APIs solely permit knowledge to be exchanged through an XML format.
A fast notice on knowledge codecs
Information 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 frequent messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML provides a posh, however free-form capacity to construction your knowledge, and is utilized in all kinds of various applied sciences. JSON is a less complicated 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 knowledge exchanges. Nevertheless, its stricter guidelines and decrease flexibility have led to its reputation lower compared to different API sorts.
What are REST APIs?
American pc scientist Roy Fielding developed the representational state switch structure, extra generally often known as 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 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 standard programming languages, like Java, C#, Javascript, and extra. The fashionable tooling accessible for REST APIs makes them a well-liked 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 find out how to use it.
Total, the primary 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 doable you clicked on this text merely since you have been interested by APIs, wherein case I hope you’re discovering it useful. Nevertheless, 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 shopper expertise by rising effectivity and permitting for higher personalization in a company’s services and products
- Lower guide work, saving workers worthwhile 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 knowledge to claims processing, cost processing, and background checks. With regards to 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 strong, extremely built-in tech stack in place. For instance, legacy carriers with bespoke methods could be reluctant so as to add one other layer of totally 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 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 as we speak.