RL - Insurance

API Technology: Enabling Digital Insurance

Issue link: https://resources.axway.com/i/1025054

Contents of this Issue

Navigation

Page 7 of 21

Chapter: Benefits of API Technology 6 BENEFITS OF API TECHNOLOGY API technology offers benefits which help insurers respond to the new challenges and opportunities. Insurers invest in API technology to realize one or more of the benefits detailed in Table 1. Table 1: API Benefits BENEFIT EXAMPLE EXPENSE SAVINGS Reduce development and maintenance costs for integration. NEW AND RAPID PRODUCT DEVELOPMENT Enable access to back end systems more quickly and efficiently to introduce or improve a product without disrupting the entire automation system. Also involves the utilization of shared data, reducing duplicate efforts and the time spent managing data. Increases speed to market. CUSTOMER EXPECTATIONS Access real-time data to deliver relevant information and improve customer service. SECURITY API gateways have security and throttling models to limit who pulls data, and when and how frequent data is pulled. Security features in API management systems include measures to prevent unauthorized external and internal access, ensure the suitability and eligibility of third parties, and prevent incidents and limit the spread of damage when they do occur. INCREASE FUNCTIONAL REACH Deliver the flexibility and agility required to enable the insurer to create an extensive ecosystem of partners and capabilities. Extend insurer solutions by incorporating functionality delivered by external parties, such as insurtechs, and data and analytic providers. Provide a single gateway to interact with many connected partners. REVENUE SOURCE Potentially generate revenue from external parties that create offerings using insurers' back office systems or monetize API offering. Potential to white-label platform to support partners or other insurers. Source: Celent How have efforts to date realized the benefits promised by API technology? A review of selected use cases illustrates what is possible. Key Research Question 1 What benefits should insurers look for from API technology? Expense saving, increased speed to market, ability to meet rising customer expectations, and increased security.

Articles in this issue

view archives of RL - Insurance - API Technology: Enabling Digital Insurance