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HomeInsuranceThe Constructive Influence of APIs on Insurance coverage Know-how

The Constructive Influence of APIs on Insurance coverage Know-how


Insurance coverage methods could be mind-bending.

These of us who work in IT or develop insurance coverage methods have loads in widespread with science fiction writers. We’re at all times trying to envision and achieve what has not but been performed. We take a look at methods which are extremely complicated and we suggest methods to make them easier. As soon as we attain a few of our “inconceivable” objectives, we try for the following step and we push the outer boundaries of know-how to realize what our firms, shoppers or prospects want.

In the case of APIs, nonetheless, there’s something a bit totally different happening.

Just lately, APIs have been touted because the “constructing blocks of future purposes.”[i] Majesco has a front-row seat on this dialog, and now we have first-hand information of how APIs and the long run match collectively. However the concept APIs are the constructing blocks of future methods can detract from what we are literally discovering: APIs are like including the long run framework to at this time’s methods proper now. When considered correctly, APIs are a bit like touring by way of time and seeing the long run, with the flexibility to make use of future instruments within the right here and now.

Why ought to insurers wish to talk about APIs any greater than they have already got?   

Insurers are grappling with their roles. How ought to they increase their roles to fulfill new wants and enhance experiences? Do APIs have a component to play in enhancing what insurers already do? The reply, in fact, is sure. Majesco’s Strategic Priorities Analysis and our Majesco CloudInsurer® environments have confirmed that APIs are essential to digital enablement. Let’s look intently at what APIs can do for methods and corporations, then let’s contemplate why insurance coverage ought to paved the way in API platform growth and use. First, it’s going to assist to reply, “What do APIs do for organizations?”

APIs are the last word “worth multiplier.”

Something an insurer does now, they might do once more in an analogous manner. In the case of methods, meaning creating practically the identical code, twice, or thrice, or 100 instances. APIs, nonetheless, permit for reuse. They keep away from the need of rewriting the identical code all through a number of system connectivity pathways.

When you can reuse code through the use of APIs for connectivity, you aren’t simply saving code, you’re saving time. You’ll be able to enhance the rate with which you’ll implement any new or versioned product or course of. The worth you have got in your preliminary concept and code is captured, harnessed and accessible with ease anyplace else. That’s what makes APIs the last word “worth multipliers.”

APIs break down organizational silos.

You probably have an efficient API-centric program, you might be naturally (and in an organized manner) decreasing siloed methods by decomposing them into smaller areas of concern. It is a idea which has develop into widespread within the know-how world with the time period, “bounded context.” We set guardrails round context with smaller, extra easily-digestible bits of utility. This is much better than having to take care of a monolithic, siloed strategy, the place every system is its personal behemoth of system complexity.

APIs foster a constant consumer expertise.

APIs are designed to ship outcomes with buyer expertise in thoughts. There’s a seamlessness to the aim pushed journey from begin to end at a enterprise operate stage, versus on the stage of technical operation. APIs are seamless and usable by design. The way in which APIs are constructed and used inside a platform surroundings gives a constant consumer expertise. You at present solely get this stage of usability in an API-centric surroundings. For many who work with methods, APIs are a life-saver. Builders at present spend a lot of their time making software program match the expertise that’s wanted. With APIs, nonetheless, the expertise could be exactly what is required the primary time and each time. 

Realizing that insurers wanted a option to step right into a cloud surroundings and acquire expertise with API gateways and platforms within the cloud, we designed Majesco CloudInsurer® with priceless insurer content material, easy-to-connect knowledge factors, plug-and-play companion applied sciences and pre-built knowledge administration and analytic instruments. All of that is accessible in a safe, Microsoft® Azure-powered surroundings.

APIs are the last word IT do-over.

Right here is the place we start to bend the thoughts. Right now’s API platforms can signify the long run state of the enterprise — and be used proper now — even when the present state isn’t fairly the place an insurer wants it to be.

Let’s say that your group has decided that it’s time for a system transformation. You might be given two choices on the right way to journey to the long run. One is to uproot the structure, get rid of previous methods, recreate them after which reinvent a complete new structure. This may increasingly must occur.

The opposite possibility is a type of time warp. It permits your future state to exist in tandem together with your present state. Your group enjoys all the long run advantages proper now, even when your present state isn’t fairly the place you need it to be.

As a company begins utilizing APIs in a platform surroundings, they’re working inside the future state of enterprise IT. Your organization might have dozens of legacy monolithic methods and but now you can disguise all these methods underneath a layer of APIs till they’re (themselves) reconstructed as API-centric methods.

That’s the final IT do over. You obtain the long run advantages, whilst you enhance the current. It’s, by far, the simplest, quickest option to shift the group to a possible, priceless, sustainable mannequin. Higher but, the thought is beneficial for insurers of any dimension/tier.  

APIs could be a quick observe to a brand new core system technique.

Rebuild. Rehab. Reconstruct. These are widespread phrases that insurers use as they grapple with the truth of transformation. The API strategy is totally different. It’s extra like realignment, recertification, or revival of the core technique. If you start utilizing APIs to rework, sure issues develop into very obvious within the course of. Waste stands out like neon indicators. Layers hidden over time develop into extra clear. Complexity begins to unravel and unfold. APIs can help you re-evaluate core methods to give attention to all that improves efficiency and improves the group. APIs assist each builders and enterprise customers to query the validity of system layers that lie beneath the API platform layer.

Insurance coverage: a particular use case for APIs.

If insurers might return in time as an alternative of ahead, there can be three issues that they’d deal with. These are insurance-endemic points:

  • Excessive knowledge volumes
  • Advanced knowledge sorts
  • Too many guidelines

The outcomes of those three points we would name knowledge chaos. It’s multiplied complexity. We see the stresses and strains of this complexity all over the place within the group, from gross sales and advertising and marketing by way of claims. As an alternative of going again and attempting to repair these points inside our present system constraints, insurers can now realign their core methods underneath an API platform umbrella that erases the problems as an alternative of attempting to repair them.

Excessive knowledge volumes

If we evaluate industries, insurance coverage has one of many highest ranges of knowledge quantity, maybe second solely to banking. API cloud platforms are the answer to visitors and quantity points. For a better elaboration on this, learn our weblog on why APIs are higher dealt with within the cloud

Advanced knowledge sorts

Some insurance coverage firms have been round for 100+ years, and most, if not all of them have grown by way of acquisition. From the beginning of knowledge assortment and use, insurers have been housing and coping with heterogeneous knowledge. Their homegrown methods have been increasing with related knowledge terrariums constructed as one-off originals. The unique knowledge architects understood that there can be progress, however not like this. Silos are the norm. Advanced knowledge is made extra complicated by way of its non-conformity.

APIs have the flexibility to interrupt down these knowledge silos. If APIs did nothing aside from to interrupt down insurance coverage knowledge silos, they’d be price it.

Too many guidelines

Examine insurance coverage with many different industries and you’ve got a wierd uniqueness. Insurance coverage is an business the place there isn’t a unifying know-how platform. There are a number of platforms which then have a number of software program purposes sitting on them. Every one among these caters to totally different aspects of an insurance coverage worth chain, whether or not it’s claims or coverage administration, or underwriting or distribution administration or brokerage. Insurance coverage is the hub for hybrid platform precedents.

With a view to construct velocity into these processes and methods, guidelines should be launched. We multiply the variety of guidelines by the variety of purposes and methods and we will see how system architectures stay so complicated.  

As insurers start to make the most of API-centric methods, they will obtain most of the advantages of a common business normal, together with higher entry to IT expertise, which we’ll talk about in a second.

Too many hurdles

There’s a fourth situation, however it’s largely a psychological one. Although APIs signify a greater manner, they’re nonetheless perceived as being troublesome to assemble and use. In a latest report by Postman, widespread IT constraints rise to the floor, resembling lack of time, complexity, lack of know-how, lack of individuals and lack of documentation, although these might not really be actual points in any respect. [See Fig. 1]

Insurers can bounce these hurdles by using an insurance coverage API platform within the cloud. It reduces time and complexity as a result of it’s pre-constructed for insurance coverage use. Launching APIs takes little or no specialised information and each step is totally documented. It’s additional proof that with regards to APIs, perceptions not match actuality. For a short description of the API launch course of, see our weblog, An Eye on the APIs: A Cloud Platform’s Position in API Documentation, Administration and Governance.

From begin to end, the logic behind API use is that it’s the greatest mix of forward-thinking know-how and present IT course correction. Is your group prepared for the form of mind-bending innovation and know-how that may catapult it ahead? Would you prefer to be taught extra about how APIs signify the brand new constructing blocks of insurance coverage methods?  Contact us at this time to be taught extra about APIs and the Majesco’s Cloud platforms that may carry you into the long run.  


[i] Kerner, Sean Michael, Why APIs are the Basis of Trendy Software program Improvement, IT Professional Right now, March 29, 2022

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