API- Key player in digitalization of insurance

At fast growing pace to meet online digital space requirement of end consumer, insurance companies have adapted the advanced technology to entice customers by providing opportunity for customer to purchase insurance products online and also ensure that customer is appropriately communicated real-time.

Manual process with age old systems ruled for long time in the insurance industry. This challenge has now been overcome by insurance companies where they have adopted latest technologies leading to customer satisfaction and business transformation.

Insurance companies have partnered with third party service providers and insurance brokers to revolutionize their business through digitalization. One such disruptive method used in digital platform is API which is rightly termed as Application Programming Interface. It is an interface between an insurance company and its respective service providers or digital insurance brokers and it enables the end user to view all types of insurance products (e.g home, travel, motor, life, personal accident) in one platform and also compare prices for single products across various insurance companies as well.

API not only helps to assess the prospective user data but also enables the end-to-end delivery of product digitally to end user right from quote generation till policy issuance. API has assisted insurance companies to overcome the manual payment methods towards their premium collection processes by enabling online payment platforms where premiums paid through digital means enables real time issuance of policy. API methodology is adaptive to constant product and regulatory changes and new product features can be enabled at expeditious timeline.

Insurance products can be digitally customized across various service providers as per their existing user database and customized products can be offered to end user as per their needs where API becomes a tool to fulfil the customer request. API has been intermediary interface which has helped insurance companies to evaluate risk assessment through accessing existing financial and medical data of the end user from third party services further minimizing the efforts required for underwriting of insurance product applicable to end user.

Data analysis is simplified through API and large chunk of data can be managed efficiently. Customer engagement has become a boon by using various methodology to keep customers constantly engaged and informed through API webservices. Business has evolved where API enables cross-selling of products across different segments on basis of the user data procured through API integrations.

API is not only cost efficient but digitally efficient to match rapid technological change and it can lead the product at par as per customer’s expectations.

Due to the above-mentioned attributes, insurance companies or partners tie up with InsurTech companies to facilitate the technological feature and base API architectural structure to integrate products dynamically as per their requirements. Hence it is important to be tech savvy and make the right decisions to choose right product as per your needs.

Think right and Buy right!