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Application Programming Interfaces (APIs) have become a vital building block in today’s digital age.

According to a recent report, over 83% of enterprise-level companies use APIs to improve their operations, enhance customer experiences, and integrate various services effortlessly. APIs allow different software systems to “talk” to each other, acting like the invisible glue holding modern business processes together. But what does this mean for the insurance sector?

In a previous article, we explored the benefits of APIs in the insurance industry. If you missed it, we discussed how APIs streamline workflows, drive innovation, and enhance customer experiences.

Today, we’re taking a step further by diving into real-world examples of APIs used in the US insurance market.

 1. Claims management APIs

One of the most common applications of APIs in insurance is claims management.

APIs allow insurers to automate the claims process—from reporting an accident to verifying coverage and processing payouts. For instance, insurers can integrate data from telematics and repair shops to expedite decisions.

Snapsheet’s Claims API is a perfect example, allowing insurance companies like Metromile to streamline the entire claims process, making it quicker and more efficient.

 2. Underwriting APIs

Underwriting is the backbone of any insurance operation, and APIs have stepped in to make it smarter. APIs now pull real-time data from external sources like medical records, financial histories, and even geospatial data.

Verisk’s RiskCheck API allows insurers to enhance their underwriting processes, offering quicker, more data-driven decisions with the aid of its 65+ triggers at the point of sale.

 3. Policy administration APIs

Managing policies manually can be tedious, but with the help of APIs, this process has become seamless.

LenderDock’s Verification-as-a-Service (VaaS) API allows insurers to automate real-time insurance verification and policy updates, like lienholder changes, without manual intervention. Lenders, lienholders, and agents benefit from instant access to up-to-date policyholder information, making life just that much easier.

Meanwhile, Duck Creek Technologies provides APIs that enable insurers to manage policies efficiently. Companies like Progressive leverage Duck Creek’s Policy APIs to streamline policy issuance, renewals, and updates, reducing manual errors and enhancing transparency.

 4. Payment processing APIs

Paying premiums used to be a cumbersome task, but not anymore.

APIs like Stripe’s Payment API, used by Lemonade, allow customers to make seamless premium payments and track their payment history. Similarly, Root Insurance uses Braintree’s API to facilitate smooth, secure transactions, supporting various payment methods.

 5. Quote generation APIs

APIs have transformed quote generation from a multi-step process to something that can be done in minutes.

Tarmika’s Bridge API pulls data from multiple carriers to generate real-time quotes for agents and brokers. State Auto and Travelers use this API to offer instant, accurate quotes for small businesses.

 6. Fraud detection APIs

APIs help combat one of the biggest threats in the insurance industry—fraud.

Shift Technology’s Force API uses machine learning to analyze claims data in real time, detecting suspicious activities that may indicate fraud. AXA uses this technology globally, identifying potential fraud and enabling the processing of claims more efficiently.

To sum it up

APIs are what really make digital insurance work.

From automating claims and underwriting to improving payment processing and fraud detection, these tools are driving efficiency across the industry while also driving innovation with the creation of new digital products, and solutions for solving a number of problems in the insurance value chain.

Ready to streamline your insurance operations? LenderDock’s Verification-as-a-Service API automates real-time insurance verification, making policy updates effortless and boosting efficiency. Contact us today to see how we can transform your business