Briisk – Insurance API – 4 great Use Cases of API empowered Insurance
Executive summary :
The insurance industry has struggled to adopt technological innovation and digitally transform. Many insurers rely on centralised legacy systems with huge central databases and closed off architecture, which make it very difficult and expensive for insurers to transform and innovate. As a result, insurtechs are exploring avenues that large insurance firms have less incentive to exploit or are simply unable given to their architectural constraints. A key technology has become a focus for many insurtechs: insurance API services.
In this article, we will take a close look at the potential of insurance API services and show use cases that illustrate how APIs will transform the future of insurance.
What is an API and what are the benefits?
In simplified terms, an application programming interface (API) is a software intermediary that allows applications to communicate with each other. In other words, an API is the messenger between two programs. As a result, APIs increase productivity for developers enormously: With an API they don’t have to reinvent the wheel every time they write a new program. Instead, they can focus on the unique proposition of their applications while outsourcing all the commodity functionality to APIs (MuleSoft 2016).
Web APIs enable organisations to access and seamlessly integrate third-party data whenever and wherever it is needed, delivering significant computing efficiency and cost savings. Nowadays, it is therefore a common best practice to combine multiple API services offered by other companies in new applications. For example, Uber combines various APIs, i.e. (MuleSoft 2016):
- Positioning is done by the operating system (iOS, Android)
- Route calculation and maps are provided by MapKit and Google Maps
- Twilio sends real time text messages to the customers
- Payment is handled by Braintree
- The receipt is sent via Mandrill
- The services are hosted in the cloud on Amazon Web Services (AWS)
Combining these API services results in an excellent and innovative user experience – realised in a very short time frame, thus facilitating rapid growth (Finexta 2019).
Insurance API use cases
After having looked at the general advantages, let’s take a look at the possible use cases of APIs in the insurance industry. Based on IBM’s research, there are different Insurance API categories and particularly interesting use cases.
Partnering
As IBM states, APIs can help make it easy for partners to do business with you. Providing APIs to partners, e.g. banks, brokers, credit unions or service centers, enables them to deliver their offerings and services or to give insurance information to their clients. This approach can be used to create new revenue streams from affiliate fees. As an example, travel agencies can offer travel insurance as part of the travel purchase.
Use Case: Travelsafe Travel Insurance Referral Program
Briisk empowered Travelsafe’s insurance distribution by allowing travel agents to register as affiliates. The travel agent receives a personalised Affiliate-URL that can be shared with their clients via any digital channel. The individual URL gets tracked and commision is paid for every successful policy sale.
For more, visit: TravelSafe Travel Insurance Referral Program
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