10 Tangible Benefits from Integrating an E-commerce Insurance API

In a previous article we covered the basics of how e-commerce companies are embracing insurance API integrations to boost their customer experiences and margins. Today we give you a more detailed list of the tangible benefits you can expect when including insurance as part of your e-commerce API strategy.
E-commerce has expanded in recent years thanks also to API (short for Application Programming Interface) integrations. E-commerce APIs have improved the service quality, diversity of offers, and profits by integrating with different applications. These applications don’t have to be built or owned by the e-commerce operator, but instead can be received as a service by consuming a third-party partner or public API.
 
As an insurance company providing insurance API solutions, we regularly engage with online retailers and wholesalers to better understand their pain points and help them deliver an exceptional customer experience at the point-of-sale.
 
These interactions have allowed us to build a detailed picture of needs, and gain an understanding of how e-commerce operators benefit the most from insurance APIs.
 

10 reasons to integrate an e-commerce insurance API

 

An insurance API can provide multiple business opportunities such as cost-efficiency, flexibility and fatter margins whilst raising the bar on customer experience.

 
1. Cost-efficiency
 
Replicating the capabilities you get through an insurance API would be costly to reproduce; at times astronomical. By consuming a third-party API you get access to all the data, functionality and other digital assets without having to pay for the development or maintenance.
 
By integrating an insurance partner API, you bring the full insurance quotation and policy creation and management capabilities into your shopping cart.
 
And since this is maintained by another company, operational costs are at an absolute minimum.
 
2. Flexibility
 
APIs foster an environment of open innovation. Your developers can build apps that interact with third-party partner or public APIs, re-utilising the same assets to create new functionalities and experiences for your customers.

APIs create opportunities for open innovation between developers for enhanced functionalities.

The best APIs are made to be simple, flexible and long-lasting. For example, our APIs are designed to provide quotes on insurance products without the need of personal data. Policy creation uses the minimal amount of data needed.
 
Moreover, strong APIs have a minimal impact on UI. For example, an insurance policy for a set of tyres can be added straight into the shopping cart with minimal effort.
 
3. Streamlined processes
 
If you want to offer add-on insurance you need to present insurance offers and quotes, create policies, generate documentation and manage policies. Furthermore, you need to achieve this from any application whilst maintaining your already optimised user experience.
 
A purposely-built insurance API allows for all this to happen in a streamlined manner and in real-time.
 
There is no need for customers to visit or interact with the insurer’s back-end application. The data collected to purchase the primary product is processed to present the insurance product and, create and manage the policy.
 
4. Open new opportunities
 
An e-commerce insurance API augments an existing offering by proposing related high-value products within the existing customer experience.
 
Imagine a customer buying an expensive camera or laptop from your ecommerce website. Imagine they also want to insure it for damage or theft.
 
By integrating an insurance API, the most suitable cover is made available to them through your ecommerce site at the basket level.
 
Through a single opt-in button and a seamless payment process, the customer can purchase both the camera and the insurance cover in a single transaction.
 
5. Access to new functionalities
 
From premium calculations to legal documents generation and claims management, the insurance business is complex and highly-regulated.
 
An insurance API gives you access to a huge amount of functionality, which then can easily be used in your own applications.
 
6. Devices and wearables integration
 
Their ubiquitous presence in our daily life make devices and wearables a treasure trove of contextual real-time data that can be used to offer the most tailor-made of insurance policies.
 
Customer-centric insurance companies are already integrating their APIs within many existing applications such as monitoring driver behaviour to provide safety tips and dynamically update the premium, thus rewarding safer drivers.
 
Wearables monitor health activities and communicate back results to the insurer’s back-end systems for lower life insurance premiums.
 
7. Exceptional customer experiences
 
More than half (57%) of customers have stopped buying from a company because a competitor provided a better experience. Forbes notes that “by opening up information access via an API, companies empower their customers to design and tailor their own experiences. The possibilities are endless. 75% of individuals believe that their company’s use of APIs has significantly enhanced their customer experience. With APIs, customers can take a driver’s seat role and identify gaps in the customer journey.”

 

57% of customers have stopped buying from a company because a competitor provided a better experience.

Through the integration of an insurance partner API in a mobile app development, customers can take advantage of the native device functions in conjunction with the API functionality.
 
For example, using the GPS location together with the API’s functionality and other data, an API can identify the location and timestamp of the loss occurrence and kick-start the claims process so as to provide the customer with faster and more personalised assistance.
 
On e-commerce portals, a strong API will enhance the digital end-to-end experience such as proposing the most suitable motor insurance when buying a used vehicle online.
 
8. Faster innovation
 
An e-commerce insurance API provides you with quick, low-cost, efficient access to complex and tested back-end systems and let you introduce new products and services without disrupting your own core systems or technology roadmaps.
 
This can speed up of your digital transformation efforts and connectedness, putting forward-looking digital marketplaces ahead of the competition.
 
9. Faster time-to-market
 
And with quick access to functionality, faster innovation, and lower operational costs, you can introduce new customer experiences with shorter, less costly iterations.
 
10. Improved revenues
 
Last, but not least, e-commerce stores can benefit from the additional revenue streams that an insurance API would provide.
 
If you are ready to explore the world of possibilities that an e-commerce insurance API can provide, feel free to get in touch with our experts. They will be more than happy to talk about your business model and together find the best solution for you and your customers.
 
 
 

We will be happy to contact you at a time that suits you, for a free, no-obligation consultation.

 
 
Recommended Reading
Ecommerce stores are embracing Insurance APIs. Here’s why. 26 February 2020
Increase e-commerce revenue with add-on insurance 09 July 2019
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PSA Insurance Solutions Ltd Reg No: C83206 is a limited liability company under Maltese Law, having its registered address at: MIB building 53 Abate Rigord Street Ta’ Xbiex Malta, Tel + 356 22 58 34 92. The company is enrolled to act as an insurance agent in terms of the Insurance Intermediaries Act, 2006 by the Malta Financial Services Authority (MFSA), Notabile Road, Attard BKR 3000, Malta.