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HomeInsuranceThe Constructive Affect of APIs on Insurance coverage Know-how

The Constructive Affect of APIs on Insurance coverage Know-how


Insurance coverage methods might be mind-bending.

These of us who work in IT or develop insurance coverage methods have quite a bit in widespread with science fiction writers. We’re at all times trying to envision and attain what has not but been achieved. We have a look at methods which might be extremely complicated and we suggest methods to make them easier. As soon as we attain a few of our “unattainable” objectives, we try for the following step and we push the outer boundaries of expertise to attain what our firms, shoppers or clients want.

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

Just lately, APIs have been touted because the “constructing blocks of future functions.”[i] Majesco has a front-row seat on this dialog, and we now 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 immediately’s methods proper now. When seen correctly, APIs are a bit like touring via time and seeing the long run, with the power to make use of future instruments within the right here and now.

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

Insurers are grappling with their roles. How ought to they broaden their roles to satisfy new wants and enhance experiences? Do APIs have an element to play in enhancing what insurers already do? The reply, after all, 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 firms, then let’s contemplate why insurance coverage ought to cleared the path in API platform growth and use. First, it’ll assist to reply, “What do APIs do for organizations?”

APIs are the final word “worth multiplier.”

Something an insurer does now, they could do once more in an analogous approach. In the case of methods, which means creating practically the identical code, twice, or thrice, or 100 instances. APIs, nevertheless, enable for reuse. They keep away from the need of rewriting the identical code all through a number of system connectivity pathways.

For those who 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 improve the rate with which you’ll implement any new or versioned product or course of. The worth you will have in your preliminary concept and code is captured, harnessed and accessible with ease anyplace else. That’s what makes APIs the final word “worth multipliers.”

APIs break down organizational silos.

When you have an efficient API-centric program, you might be naturally (and in an organized approach) lowering siloed methods by decomposing them into smaller areas of concern. It is a idea which has develop into well-liked within the expertise 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 method, 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 perform degree, versus on the degree of technical operation. APIs are seamless and usable by design. The best way APIs are constructed and used inside a platform atmosphere gives a constant consumer expertise. You at present solely get this degree of usability in an API-centric atmosphere. For individuals 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, nevertheless, the expertise might be exactly what is required the primary time and each time. 

Realizing that insurers wanted a solution to step right into a cloud atmosphere and acquire expertise with API gateways and platforms within the cloud, we designed Majesco CloudInsurer® with useful 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 atmosphere.

APIs are the final word IT do-over.

Right here is the place we start to bend the thoughts. Right now’s API platforms can characterize 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 how one can journey to the long run. One is to uproot the structure, put off previous methods, recreate them after which reinvent a complete new structure. This may occasionally 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 corporation begins utilizing APIs in a platform atmosphere, 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 beneath 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, when you enhance the current. It’s, by far, the best, quickest solution to shift the group to a possible, useful, sustainable mannequin. Higher but, the concept is beneficial for insurers of any measurement/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 fact of transformation. The API method is totally different. It’s extra like realignment, recertification, or revival of the core technique. Once you start utilizing APIs to remodel, sure issues develop into very obvious within the course of. Waste stands proud like neon indicators. Layers hidden over time develop into extra clear. Complexity begins to unravel and unfold. APIs will let you re-evaluate core methods to concentrate on 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 may return in time as a substitute of ahead, there can be three issues that they’d deal with. These are insurance-endemic points:

  • Excessive knowledge volumes
  • Complicated knowledge varieties
  • Too many guidelines

The outcomes of those three points we’d name knowledge chaos. It’s multiplied complexity. We see the stresses and strains of this complexity in all places within the group, from gross sales and advertising via claims. As an alternative of going again and making an attempt to repair these points inside our present system constraints, insurers can now realign their core methods beneath an API platform umbrella that erases the problems as a substitute of making an attempt to repair them.

Excessive knowledge volumes

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

Complicated knowledge varieties

Some insurance coverage firms have been round for 100+ years, and most, if not all of them have grown via acquisition. From the beginning of information 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. Complicated knowledge is made extra complicated via its non-conformity.

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

Too many guidelines

Evaluate insurance coverage with many different industries and you’ve got an odd uniqueness. Insurance coverage is an business the place there isn’t any unifying expertise platform. There are a number of platforms which then have a number of software program functions sitting on them. Every considered one of these caters to totally different sides 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 pace into these processes and methods, guidelines need to be launched. We multiply the variety of guidelines by the variety of functions and methods and we are able to see how system architectures stay so complicated.  

As insurers start to make the most of API-centric methods, they’re going to 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 concern, however it’s largely a psychological one. Despite the fact that APIs characterize a greater approach, they’re nonetheless perceived as being tough to assemble and use. In a current report by Postman, widespread IT constraints rise to the floor, reminiscent of lack of time, complexity, lack of awareness, lack of individuals and lack of documentation, though these might not truly 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 quick description of the API launch course of, see our weblog, An Eye on the APIs: A Cloud Platform’s Function in API Documentation, Administration and Governance.

From begin to end, the logic behind API use is that it’s the finest mix of forward-thinking expertise and present IT course correction. Is your group prepared for the type of mind-bending innovation and expertise that may catapult it ahead? Would you wish to be taught extra about how APIs characterize the brand new constructing blocks of insurance coverage methods?  Contact us immediately 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 Fashionable Software program Growth, IT Professional Right now, March 29, 2022

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