Chapter:
API
Use
7
API USE
Celent uses a four-step framework to categorize the different types of API use (adapted
from the Celent report APIs in Banking: Four Approaches to Unlocking Business Value):
APIs are critical technology enablers for several use cases in insurance including
application integration, insurance as a platform, innovation, and client connectivity
(see Figure 3).
Figure 3: Four Approaches to Unlocking Business Value with APIs
Source: Celent analysis
• Integration — provides legacy modernization by wrapping legacy systems with a
decoupled integration layer, bridging traditional batch-based processes to real-
time, digital cloud, mobile, and social applications.
• Insurance as a Platform — enables a modular application stack which provides
insurers with state-of-the-art digital capabilities.
• Innovation — connects insurers and third party firms such as insurtech startups,
resulting in inventive, collaborative partnerships.
• Connectivity — allows clients and partners to integrate directly with the insurer
for real-time access to their data and services.
Each area is examined in detail, and case studies illustrate the benefits that insurers
have realized.
INTEGRATION
APIs benefit organizations by enabling developers to access back end systems more
quickly and efficiently. One way of looking at APIs is not to be excessively focused or
taken with the detailed program specifications, but rather to see them as a series of
building blocks. The underlying foundation of web services and APIs helps to modernize
legacy systems; wrap the outdated system with the integration layer, and bridge to the
