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This publish is a part of a sequence sponsored by AgentSync.
Insurance coverage is filled with enjoyable acronyms. So full, in truth, that we’ve written a number of items like this one and this one to attempt to cowl as many as attainable. 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 corporations, APIs are greater than a passing development. API, which stands for utility 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 functions to speak to one another. Whereas there are totally different API constructions (which we’ll get into shortly), the tip aim of every is to present organizations a extra accessible and standardized strategy 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 a situation you’ve in all probability 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 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 manner you possibly can perceive, like by supplying you with the fee and estimated time of arrival to 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 situations, accessible 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 will be break up into a number of totally different “sorts” relying on the way you categorize them. One widespread strategy to differentiate APIs is by their supposed viewers, during 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: Also called inside 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.
- Associate APIs: Associate 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 associate APIS, and so they aren’t accessible for the general public.
One other widespread strategy 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 easy object entry protocol, higher often called SOAP, is an API construction kind that helps advanced 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 predominant variations between SOAP and REST is that SOAP APIs solely enable knowledge to be exchanged through an XML format.
A fast be aware on knowledge codecs
Knowledge codecs are guidelines for structuring knowledge in order that it may be saved or shared throughout totally different networks and databases. The information format dictates preset specs for the way builders should set up knowledge.
Two widespread messaging codecs are JSON, or JavaScript object notation, and XML, or extensible markup language. XML presents a posh, however free-form capacity 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 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 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 skill to ship knowledge through XML, JSON, and different messaging codecs, has cemented the REST construction as an alternative choice to the restrictions of SOAP.
REST APIs have a wealthy ecosystem of software program tooling permitting them to be simply accessed from in style programming languages, like Java, C#, Javascript, and extra. The trendy tooling accessible for REST APIs makes them a preferred alternative 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 have a look at AgentSync’s ProducerSync API documentation and decide methods 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 attainable you clicked on this text merely since you had been inquisitive about APIs, during which case I hope you’re discovering it useful. Nonetheless, it’s extra probably 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 better personalization in a company’s services and products
- Lower guide work, saving staff worthwhile effort and time
- Save prices and downtime by eliminating the necessity to develop and/or combine functions from scratch
Insurance coverage carriers and businesses have a number of good use-cases for APIs, from compliance knowledge to claims processing, fee processing, and background checks. On the subject of 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 sturdy, extremely built-in tech stack in place. For instance, legacy carriers with bespoke methods may 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 might 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 lower 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.
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