At InsureTech Join, I had the nice pleasure of sitting down with Kate Smith of AM BestTV, Ilya Bodner of Daring Penguin and Kristen Tyrrell of Catch to speak concerning the worth of APIs and the way they help insurance coverage ecosystems.
APIs (utility programming interfaces) usually are not new or notably transformational at this level, however they provide important benefits to insurers that embrace them. They permit carriers to:
Share knowledge internally and externally in a method that’s protected and safe.
Join with ecosystem companions.
Entry quicker and extra agile capabilities, via insurtechs reminiscent of Daring Penguin and Catch.
See advantages throughout the worth chain, notably in distribution.
Though most insurers have been constructing expertise for many years, their legacy methods may be rigid and burdensome to replace, making it tough for carriers to satisfy prospects’ quickly altering expectations. APIs bridge the hole, enabling them to entry and share knowledge with out having to swap out all their previous applied sciences.
APIs are particularly invaluable for offering distribution channel choices—enterprise to client, or enterprise to enterprise—and enabling carriers to attach with new prospects via extra elegant interfaces. In addition they open new pathways in claims, in underwriting and throughout the worth chain, supporting extra streamlined interactions. These advantages are key for forward-looking insurers that function in ‘the brand new’ and wish to develop their market share.
However knowledge safety and veracity are essential. Insurers and their ecosystem companions must ensure that solely the correct events have entry to knowledge via their APIs, and that the information they share is dependable and correct.
Because the underlying expertise stack that helps APIs evolves, insurers should rework their groups to a technology-first focus. It’s not nearly attracting the correct engineering expertise, but in addition about studying to work in an iterative, agile method, in order that they’ll reply to adjustments shortly and effectively. Insurtechs are forward on this functionality, capable of undertake new requirements and applied sciences at a quicker price than most incumbent insurers. That is one more reason they make such invaluable ecosystem companions.
Sooner or later, APIs will allow carriers to offer services and products nearer to actual time, which is what prospects count on based mostly on their interactions with the GAFAs—Google, Amazon, Fb and Apple—and new digital-first opponents. Insurers with out APIs won’t solely miss out on the advantages of protected and safe connections with ecosystem companions; in addition they danger being left behind.
Watch the video of the total phase right here.