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How to Leverage Application Integrations in the Insurance Sector

Insurance is a necessity for all walks of life. Whether it’s life, health, or car insurance, the insurance industry is there to help customer protect what they care about. A lack of customers generally isn’t a problem for an industry that sells a necessary product, and there are plenty of coverage options available for applicants to choose the plan that works for them. For example, a car insurance agency will offer liability coverage, as required by state law, but they’ll also provide comprehensive coverage and other levels of plans for those who need them.

What the insurance companies really need to do is connect with applicants and customers more efficiently, employ effective data management practices to improve workflow, boost value chain distribution, and leverage scalable technology to remain competitive. This can all be made possible thanks to application integration. Traditionally, in legacy systems, an organization’s software solutions all work in separate silos, meaning that data must be manually extracted from each one in order to be analyzed. This process is not only time-consuming, but it’s also prone to human error. With application and data integration, all software applications can be connected, and their data can feed to one centralized source. This connectivity is essential for any digital transformation, and modern businesses in all industries are embracing APIs and the changes they bring.

How does application integration work?

Thanks to application programming interfaces (APIs), different software solutions are able to communicate over networks, both public and private. This capability powers the internet as we know it, and it allows enterprise insurance providers to connect their digital products in one single source of truth via application integrations. This is a critical part of enterprise resource planning (ERP), and it enables insurance companies to keep up with the big data that comes their way, so they can improve business processes and offer better service. Here are just a few of the main ways in which the insurance industry leverages application integration.

Application integration allows you to gain actionable insights faster.

Aside from the customers themselves, data is the most valuable resource available to modern businesses, but only if it’s used correctly. Thanks to integrations, an insurance provider collects data from different applications instantly into a data format that can be easily understood. This makes it easy to track information like which products and insurance policies are the most popular, how satisfied customers are with their service, and how insurance premium rates are changing in the industry. It also makes it easier to check new applicants since relevant information like driving history, credit score, and medical history can be quickly stored and analyzed.

API enriches the customer experience.

Insurance companies can provide value to their customers beyond the insurance policies themselves. For example, as insurance providers continue moving toward insurance as a platform, it’s easy to include information on their websites such as how the real estate market is changing for homeowners, or they could break down rewards they offer for safe drivers with auto insurance quotes.

Integrations also make it possible to improve customer support. Consider a customer relationship management (CRM) system, for example. This stores information on new customers and existing ones alike, making it easy to create personalized offers for loyal customers. The information can also be combined with sales data to determine why the most popular packages sell so well and create new product offerings that mimic their success.

API helps you scale for the future.

The best thing about application integration is that it allows solutions to connect to the cloud or virtual servers instead of having to utilize onsite infrastructure. This means that solutions are easy to scale as the insurance sector continues to evolve and customer needs grow. With data collected and updated in real-time, insurance companies have everything they need to expand their services and stay a step ahead of the competition.

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