Underwriters are busy, and manual processes aren’t helping. However, APIs and automation have been a welcome relief for carriers, from anticipating functions to retrieving data to processing claims faster. I’m betting on 2024 being the “Year of APIs.”
In simple terms, an API (application programming interface) automates tedious tasks. APIs act as digital bridges of code that allow devices, software applications and data servers to communicate with each other.
As commercial and specialty underwriters grapple with legacy systems and siloed data, APIs emerge as operational steroids, propelling processes forward and optimizing workflows. API integration isn't just about adopting new technology; it's about meeting evolving customer demands. In an increasingly competitive market, speed and efficiency are a top priority. With insurers trying to keep pace with customer demands, sometimes a few hours of slowdown can determine the success or failure of a risk being accepted. By leveraging APIs to trim wasteful practices and optimize workflows, insurers create an ecosystem where everyone thrives, including the customer.
See also: A New Approach to Embedded Insurance
Amid the pricing and product strategies, customers are increasingly seeking quality service. With APIs, customers face less friction in the application processes. APIs can integrate with claims processing systems, enabling faster resolution and improved customer satisfaction. This frees time for underwriting teams, enabling them to focus less on admin and more on the underwriting process.
Imagine an API that retrieves weather records or property information instantly, eliminating the need for manual data entry. This streamlining translates to faster processing times, reduced errors and significant cost savings. An E&S underwriter could then prepare risk data in hours, versus days.
See also: Making Inroads With Open APIs
However, moving to an API-driven future isn't without its challenges. APIs can be complex and run into compatibility issues with different versions of software, leading to errors and system failures.
Change is uncomfortable, but it is essential for growth. Insurers today are moving toward a more integrated digital system ecosystem, and they're recognizing how APIs improve speed and decision-making. With APIs as their operational steroids, insurers are poised to gain a competitive edge.
Here's to the year of APIs.
In a recent webinar, titled "The Year of the API," I spoke with industry leaders Ryan Seager from TruStar Underwriting and Matt Carter from Altus Specialty Markets about the transformative potential of API-enabled technology.
