The Benefits of Configurable APIs

Just as the Industrial Age brought about the mechanization of factories and assembly lines, technology is automating and digitizing many aspects of the insurance industry.

The landscape of commercial insurance has constantly been evolving, albeit slowly. But now, thanks to new technologies and an openness to its adoption, the industry is moving faster than ever.

One pivotal component of this transformation is the utilization of configurable APIs. These powerful tools offer unique benefits that revolutionize how insurance professionals operate and serve their clients.

In this post, we'll explore the advantages of configurable APIs and how they empower commercial insurance agents and brokers to tailor their systems, improve efficiency, and deliver exceptional value to their clients.

What are Configurable APIs?

It is important first to understand what an API is. An API, or Application Programming Interface, is a set of rules and protocols that allows different software applications to communicate with each other.

We can think of an API like a digital translator, letting different computer programs talk to each other, easily share information, or work together on specific jobs. It's like a bridge that helps programs understand each other's language, making things work smoothly behind the scenes.

67% of insurance brokers say that APIs are helping to increase sales.

(source: Insurtech Insights 2022)

Now take APIs one step further. A configurable API is a more flexible version that allows developers to customize certain aspects of its behavior to better suit specific needs. With a configurable API, a developer can adjust settings, parameters, or functionalities to tailor its behavior to meet specific requirements without making significant changes to the API itself.

This flexibility makes configurable APIs particularly useful when developers and, more importantly, their insurance clients require a more adaptable and dynamic integration between different software systems. In fact, 75% of developers state that configurable APIs are necessary to deliver solutions tailored to their customers’ needs.

In a nutshell, configurable APIs provide the agility to meet the changing demands of how data is collected, packaged, and used.

Legacy Software: Do Everything, Excel at Nothing

Massive standalone systems and legacy software have long been regarded as the backbone of broker operations. These systems were designed with the promise of doing everything, aiming to be the one-stop solution for all insurance needs. However, as time has passed, it has become evident that these monolithic systems, while capable of performing a wide range of functions, often fail to excel in any of them.

The most restrictive aspect of monolith systems is their inability to adapt to the rapidly changing marketplace. Legacy systems, characterized by their slow update cycles and complex modification processes, struggle to keep up with these rapid changes. Brokers who rely on such systems cannot offer the latest coverage options, respond promptly to market shifts, or meet clients' evolving needs, putting them at a competitive disadvantage.

More importantly, clients can suffer. Lack of adequate coverage, misclassification of exposures, or overpriced rates are a disservice to clients who trust brokers to protect their interests adequately and cost-effectively. As a result, brokers face the arduous task of working around the limitations of their technology, which can hinder their ability to provide optimal solutions.

The Tailoring of Technology in Insurance

While massive standalone systems may promise to do everything, we know they fall short when catering to your business's specific needs and nuances. Commercial insurance is far from one-size-fits-all; your technology should reflect that reality.

Your brokerage is unique, and your software should be too.

The future of insurance lies in interconnected systems that can adapt to unique business cases. In the digital age, where information flows rapidly and expectations are high, agility and adaptability are key. Configurable APIs allow you to create systems that work seamlessly with your company's processes and workflows.

Streamlined Communication

One of the primary advantages of configurable APIs is streamlined communication. These APIs automate communication processes, allowing agents to interact with carriers, brokers, customers, and prospects more efficiently. From sending automated reminders to automating submission workflows, configurable APIs can exponentially streamline your communication capabilities. Ultimately, this frees up valuable time for brokers to focus on building relationships and providing personalized service.

Effortless Data Sharing

Configurable APIs facilitate seamless data sharing between brokers and carriers. Gone are the days of manual data entry and re-entry into multiple systems. Steps that consume valuable time and increase the risk of errors. With configurable APIs, brokers can obtain quotations from multiple carriers more quickly and accurately.

Effectively, configurable APIs increase the speed of your agency, with 55% of businesses growing faster than those yet to embrace the technology.

Automation for Speed and Efficiency

Automation is a buzzword across many industries, and insurance is no exception. Configurable APIs empower agents to automate various tasks, such as communication with chatbots, cloud storage for client records, and pulling marketing data from social media. These automated processes save time and reduce the likelihood of human errors, ensuring smoother operations and increased productivity.

Enhanced Customer Experience

In the end, it is about your customers. Today’s customers expect tailored experiences. Configurable APIs allow for customization and personalization, enabling agents to deliver precisely that. Whether customizing policies to meet specific or unique exposures or simply automating personalized follow-ups, APIs enhance the overall customer experience. In an industry where customer retention equates to profitability, clients whose needs are understood and met individually are likelier to remain loyal.

Industry Leadership Through Innovation

Embracing configurable APIs in your brokerage can help you as an industry leader. By leveraging technology to drive innovation, brokers can create separation between themselves and the competition. The resulting moat will attract clients who seek proactive brokers who adopt cutting-edge solutions that enhance the insurance process while simultaneously building trust and credibility within the industry.

Blazing a Path to Future Success

In the rapidly changing world of commercial insurance, your success as a broker hinges on adaptability and innovation. Configurable APIs offer you a gateway to that future by seamlessly, efficiently, and cost-effectively connecting current data systems with your industry partners.

At Highwing, we understand configurable APIs are not just a technological tool; they are a strategic advantage. They empower brokers to build a technology ecosystem that responds to your specific needs and those of your clients. Greater efficiency, enhanced customer experiences, and industry leadership breed better profitability – and profitability fuels future success.

Want to learn more about how Highwing helps brokers and carriers leverage the power of configurable APIs? We would love to chat with you.