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This put up is a part of a sequence sponsored by AgentSync.
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 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 purpose! 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 allows two completely different programs to switch information 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 offer organizations a extra accessible and standardized solution 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 via a situation you’ve most likely discovered your self in earlier than: calling an Uber.
Whenever 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 popular 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 possibly can perceive, like by supplying you with the fee and estimated time of arrival to 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 information like present visitors situations, obtainable drivers, and quickest routes and returns it to you in a means 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 break up into a number of completely different “varieties” relying on the way you categorize them. One frequent solution to differentiate APIs is by their supposed viewers, by which 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: Often known as inner APIs, non-public 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 approved 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 accomplice APIS, they usually aren’t obtainable for the general public.
One other frequent solution to categorize APIs is by their construction. You might have heard of two of the most typical 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 generally known as SOAP, is an API construction sort that helps advanced 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 fundamental 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 manage information.
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 information, and is utilized in all types of various applied sciences. JSON is an easier format, as compared, however has grow 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 advanced information exchanges. Nonetheless, its stricter guidelines and decrease flexibility have led to its recognition lower compared to different API varieties.
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 standard programming languages, like Java, C#, Javascript, and extra. The trendy tooling obtainable for REST APIs makes them a preferred selection 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 learn 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 and not using a entire 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, by which case I hope you’re discovering it useful. Nonetheless, it’s extra doubtless you’re right here to be taught 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 client expertise by growing effectivity and permitting for larger personalization in a company’s services
- Lower handbook work, saving workers precious effort and time
- Save prices and downtime by eliminating the necessity to develop and/or combine purposes from scratch
Insurance coverage carriers and businesses have a number of good use-cases for APIs, from compliance information to claims processing, fee processing, and background checks. Relating to insurance coverage, having up-to-date producer licensing and onboarding information on the level of motion is a should. By leveraging APIs, carriers, businesses, 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 strong, extremely built-in tech stack in place. For instance, legacy carriers with bespoke programs is perhaps reluctant so as to add one other layer of totally developed software program, like a standalone compliance answer, into their tech stack. As an alternative, it might be extra environment friendly and cost-effective to string API information via their current programs.
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, service appointments, and adjuster licensing. With correct, easy-to-understand information delivered straight into your current programs, 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 danger? Contact AgentSync at the moment.
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