This publish is a part of a collection sponsored by AgentSync.
Insurance is stuffed with enjoyable acronyms. So full, actually, that we’ve written a number of items like this one and this one to attempt to cowl as many as attainable. While these articles gives 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.
While 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 is an API?
While it could really feel like simply the most recent buzzword being tossed round by tech corporations, APIs are greater than a passing development. API, which stands for software programming interface, refers to an middleman layer of software program that permits two totally different methods to switch knowledge seamlessly between them.
To simplify, APIs assist purposes to speak to one another. While there are totally different API constructions (which we’ll get into shortly), the tip purpose of every is to offer organizations a extra accessible and standardized approach to share knowledge each internally and externally.
How do APIs work?
To perceive how an API works with out getting caught up in a bunch of tech bro mumbo jumbo, let’s stroll by a state of affairs you’ve most likely discovered your self in earlier than: calling an Uber.
When you employ 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 well-liked 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 means you possibly can perceive, like by providing you with the fee and estimated time of arrival in 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 site visitors circumstances, accessible drivers, and quickest routes and returns it to you in a means 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 break up into a number of totally different “types” relying on the way you categorize them. One frequent approach to differentiate APIs is by their meant viewers, by which case we will separate them like this:
- Public APIs: Also referred to as exterior or open APIs, public APIs can be found to builders and customers with little to no restrictions. Think in regards to the Uber instance.
- Private APIs: Also often 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. Private APIs face extra restrictions and solely approved people can entry them.
- Partner APIs: Partner APIs are a cheerful medium, which a enterprise builds and maintains for its personal use and that of its strategic enterprise companions. Users want particular authorization to entry accomplice APIS, they usually aren’t accessible for the general public.
Another frequent approach to categorize APIs is by their construction. You might 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 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 constructions. It’s older, extra established, extra clearly outlined, and extra tightly managed than different architectures.
One of the primary variations between SOAP and REST is that SOAP APIs solely enable knowledge to be exchanged by way of an XML format.
A fast word on knowledge codecs
Data codecs are guidelines for structuring knowledge in order that it may be saved or shared throughout totally different networks and databases. The knowledge 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 affords a posh, however free-form means to construction your knowledge, and is utilized in all types 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. However, its stricter guidelines and decrease flexibility have led to its recognition lower compared to different API sorts.
What are REST APIs?
American laptop scientist Roy Fielding developed the representational state switch structure, extra generally often called 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 a substitute for the constraints of SOAP.
REST APIs have a wealthy ecosystem of software program tooling permitting them to be simply accessed from common 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 have a look at AgentSync’s ProducerSync API documentation and decide tips on how to use it.
Overall, the primary draw of REST APIs is simply how scalable and versatile they’re. Developers can shortly and simply combine REST APIs with their pre-existing softwares with out a complete lot of added work.
Why do APIs matter in insurance coverage?
It’s attainable you clicked on this text merely since you had been interested in APIs, by which case I hope you’re discovering it useful. However, it’s extra possible you’re right here to study why APIs matter, and extra particularly why they matter within the insurance coverage trade.
Speaking broadly, industries throughout the board leverage APIs for digital transformation. Incorporating APIs into enterprise operations can:
- Improve the client expertise by growing effectivity and permitting for better personalization in a corporation’s services
- Decrease 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 carriers and businesses have a number of good use-cases for APIs, from compliance knowledge to claims processing, cost processing, and background checks. When it involves insurance coverage, having up-to-date producer licensing and onboarding knowledge on the level of motion is a should. By leveraging APIs, carriers, businesses, and MGAs can entry present knowledge 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 methods is likely to be reluctant so as to add one other layer of absolutely developed software program, like a standalone compliance answer, into their tech stack. Instead, it could be extra environment friendly and cost-effective to string API knowledge by 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.
Ready to begin leveraging APIs for quicker speed-to-revenue, extra environment friendly compliance groups, and decrease enterprise threat? Contact AgentSync in the present day.