Only 15% of customers are satisfied with the digital experience of their insurers. Insurance companies need to adopt new technologies, such as APIs, to accelerate their digital transformation and remain competitive. More than 40% of consumers indicate that they might change their insurance provider due to a lack of digital capabilities.
In this article, we will explore the top use cases of API in the insurance industry with examples and provide you with a data-driven list of insurance API providers.
1- Mobile & web applications integration
Each day more applications are created and distributed. Integration with mobile and web applications is beneficial to insurance companies as they can :
- Increase their offering,
- Access user’s insight and track their behaviors,
- Provide integration between an insurance system and other applications.
However, ensuring that your application and API are functioning correctly is crucial, as users tend to abandon applications that function poorly. To understand if your application and API are functioning correctly, you should do application and API testing.
Chatbots have various use cases in the insurance industry, such as :
- Providing customized quotes.
- Answering customers’ questions.
- Filling first notice of loss (FNOL) documents.
- Managing claims processing including notifying the customers regarding the process and repair/payment details.
To understand more about insurance chatbots, read Top 10 Insurance Chatbots Applications & Use Cases.
API that is connected to chatbots can:
- Collect conversations between the bot and customers.
- Monitor and improve transcripts.
- Integrate chatbots with ERP and CRM.
- Connect the chatbot to the backend.
IoT generates data that can be beneficial for the insurers by:
- Allowing them to better know their customer. Thus, insurers can better assess risk and perform more effective underwriting.,
- Increase product customization for customers (pay as you go insurance products),
- By alerting insurance companies when damage occurs, IoT devices improve the fraud detection capabilities of insurers.
An example of how IoT devices have impacted the insurance industry is drones. Drones have impacted insurance companies in 2 ways:
- Some insurance companies have started using drones for making claims adjustments.
- Insurance companies have started to provide drone insurance to customers that need it.
API can be used to collect information from these devices and integrate them into insurance companies. An example of a drone API provider that insurance companies can use is :
Intellias has developed API in their platform that insurance companies can use to get information about:
- Safety of using a drone to reach a particular location.
- Analysis of geometry for all local low-altitude airspace warnings.
- Recognizing drones and verifying drone operators.
If you want to understand more about how IoT impacts the insurance industry, read 6 Ways IoT will Change the Insurance Sector.
4- Damage assessment
Inspection of vehicle or house damage is a time-consuming process that can adversely affect insurers and customers if not done on time. API can connect insurance companies to automatic damage assessment platforms. These platforms utilize :
Customers just need to upload pictures and/or videos of the vehicle to the insurance platform to start their claim process. (see Figure 1)
Figure1. Automatic damage assessment
This API enables the integration of WeProov products, such as their damage detection solution. To see how their damage detection platform work watch this video:
5- Claim processing
APIs can increase:
- Accuracy of claims processing.
They can integrate the different systems and internal & external data sources. The connectivity enabled by API can result in faster and easier :
- Access to information.
- Verification of information.
An example of insurance claim processing API is :
This API enables access to the weather data such as :
- Historical data on hail and wind for different locations.
- Weather verification based on location and pearl.
- Hour-by-hour weather data.
- 7-day forecast data.
You can watch the following video to understand more:
If you are interested in learning more about technologies improving claim processing, read Top 7 Technologies that Improve Insurance Claims Processing.
- Accessing more data, such as data from wearable devices
- Real-time fact-checking such as employment status
- Automating manual tasks such as manually matching information from different sources
An example of underwriting API is :
Human API enables connecting health data from various sources, such as :
- Patient portals,
The data can be used to accelerate underwriting and increase customer satisfaction. Watch this video to understand how Human API works.
To understand more about technologies improving underwriting, read Top 4 Technologies that Improve Insurance Underwriting.
You can access our list of more than 40 insurance API providers here.
If you are trying to understand how insurance API can benefit your organization, reach us :
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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