How API Is Affecting The Insurance Industry?

It has always been important for insurance companies to provide the best customer experience.
Adopting an API strategy can definitely enhance the insurance digital end to end experience and deliver better customer satisfaction!

What does API mean?

“Application programming interfaces (API) is a set of clearly defined methods of communication among various components for building software. It simplifies programming by abstracting the underlying implementation and only exposes objects or actions the developer needs.” Wikipedia

It makes it easier to develop a computer program by providing all the building blocks, which are then put together by the programmer.

It is used by big and small companies, for instance, Facebook and Google use APIs to simplify their account creation process and saves the company from creating a system from scratch.

How can API help insurers?

API helps insurance build richer applications by easily integrating third-party programs.
Customers can then choose an application perfectly adapted to their needs, constructed from the wide range of options available.
Insurance companies do not need to recreate the wheel again

According to Capgemini’s Top-10 Trends in Property & Casualty Insurance 2018, Insurers are improving customer engagement by leveraging APIs to integrate data from various sources to provide more meaningful and personalized offerings.

An interesting example from Capgemini is a mobile app from Security First Insurance that leverages map and weather APIs to help customers prepare for storm season and track hurricanes on a custom map. They can also manage their insurance policy, make a payment, or file a claim.

We can say that APIs helps insurance companies deliver better customer experiences thanks to third-party partnerships!