This post is part of a series sponsored by AgentSync.
Insurance has a lot of fun abbreviations. In fact, the content is so rich that I’ve written multiple articles like the one below. This one and This one I’ll try to cover as much as possible. These articles will cover NPN, NAIC, P&C, etc. in detail, but in this article we will explore a new area in the insurance acronym block: APIs.
Although not limited to the insurance industry, APIs are becoming increasingly popular among insurance and insurtech organizations, and for good reason. So let’s jump into a discussion about APIs, including what they are and why they are important in insurance.
What is an API?
While it may feel like just the latest buzzword being thrown around by tech companies, APIs are more than just a passing trend. API stands for Application Programming Interface and refers to a middle layer of software that allows data to be transferred seamlessly between two different systems.
Simply put, APIs allow applications to communicate with each other. There are different API structures (more on this later), but the end goal of each is to provide a more accessible and standardized way for organizations to share data both internally and externally. is.
How does the API work?
To understand how the API works without getting bogged down in tech jargon, let’s take a look at a scenario you’ve probably experienced before: calling an Uber. Sho.
When you request transportation using a rideshare app, you interact with an API. The Uber app connects to the internet and sends data such as your location and desired destination to a server. That server retrieves the data, interprets it, and sends the relevant data back to your app. The app then interprets this new data and displays it in a way that the user can understand, such as trip fares and estimated arrival times.
The API works as soon as you open a ride request. A last-minute Uber request to the airport is sent to the API, which retrieves data such as current traffic conditions, available drivers, and fastest route, and returns the data in a way that makes the destination clear. to miss the plane.
What types of APIs are there?
APIs can be divided into several different “types” depending on how they are classified. One common way to differentiate APIs is by their target users. In this case, it can be divided as follows:
- Public API: Public APIs, also known as external APIs or open APIs, are available to developers and users with few or no restrictions. Consider the example of Uber.
- Private API: Private APIs, also known as internal APIs, are hidden from external users, and organizations that build and maintain private APIs do not share them for external use. Private APIs have more restrictions and can only be accessed by authorized individuals.
- Partner API: Partner APIs are useful media that companies build and maintain for their own use and that of their strategic business partners. Certain authorizations are required for users to access partner APIS, which are not publicly available.
Another common way to categorize APIs is by their structure. You may have heard of the two most common API structures: SOAP and REST. Don’t mistake it for a very simplistic self-care routine.
What is SOAP API?
Simple Object Access Protocol, known as SOAP, is an API structure type that supports complex data exchange. The SOAP structure is like the originator of the API structure. It is older, more established, better defined, and more tightly controlled than other architectures.
One of the main differences between SOAP and REST is that the SOAP API allows data to be exchanged only in XML format.
A quick note about data formats
Data formats are rules for structuring data so that it can be stored or shared across different networks and databases. Data formats determine preset specifications for how developers organize data.
Two common messaging formats are JSON (JavaScript Object Notation) and XML (Extensible Markup Language). XML provides the ability to structure data in a complex but free-form format and is used in all sorts of different technologies. In comparison, JSON is a simpler format, but it has become the lingua franca for REST APIs.
SOAP was one of the first standardized API formats in the field and has been successfully used for complex data exchange. However, strict rules and less flexibility have made it less popular compared to other API types.
What is REST API?
Developed by American computer scientist Roy Fielding Representation state transfer architecture, commonly known as REST or RESTful, is another approach to building APIs. The flexibility and ability to deliver data via XML, JSON, and other messaging formats has established REST structures as an alternative to the limitations of SOAP.
REST APIs have a rich ecosystem of software tools and are easily accessible from popular programming languages such as Java, C#, and JavaScript. REST APIs are popular as low-cost, high-reward software because they take advantage of the latest tools.
REST APIs are generally documented in OpenAPI format, making it easy for developers to determine exactly how the REST API works and what it does. For example, anyone (with the technical know-how) can view it. ProducerSync API documentation for AgentSync and decide how to use it.
Overall, the main appeal of REST APIs is their scalability and flexibility. Developers can quickly and easily integrate REST APIs with their existing software without much additional effort.
Why are APIs important in insurance?
You may have clicked on this article simply because you were interested in APIs. In that case, I hope I can help you. However, you’re probably here to learn why APIs are important, and more specifically, why they’re important in the insurance industry.
Broadly speaking, entire industries are leveraging APIs for digital transformation. By incorporating APIs into your business operations, you can:
- Improve the customer experience by increasing efficiency and increasing the personalization of your organization’s products and services.
- Reduce manual work and save your employees valuable time and effort.
- Save costs and downtime by eliminating the need to develop and integrate applications from scratch.
Insurance companies and agencies have some great use cases for APIs, from compliance data to claims processing, payment processing, and background checks. When it comes to insurance, Requires current producer license and onboarding data at time of action. By leveraging APIs, carriers, agencies, and MGAs can access up-to-date data when and where they need it.
API integration is especially beneficial for insurance organizations that already have a robust, highly integrated technology stack in place. For example, traditional carriers with bespoke systems may be reluctant to add another layer of fully developed software to their technology stack, such as a standalone compliance solution. . Instead, it may be more efficient and cost-effective to thread API data through your existing system.
Humanize your data with AgentSync’s ProducerSync API
AgentSync’s ProducerSync API is a REST API that provides access to over 200 data points, including producer licenses, carrier reservations, and adjuster licenses. Accurate, easy-to-understand data is delivered directly into existing systems, allowing teams to eliminate hours of research and guesswork from their workflows.
Are you ready to start leveraging APIs to increase your speed of monetization, make your compliance team more efficient, and reduce business risk? Contact AgentSync today.
