API technology’s popularity grows as risk managers embrace connectivity

Risk managers are uncovering the value of application programming interface (API) technology that makes real-time data exchange possible and speeds up insurance management and loss prevention decision-making.

Zurich is believed to be the first insurer to offer API connectivity to international customers, giving them the ability to share real-time information on policies, claims, invoices, risk engineering information and more. The result is a big leap in efficiency and data transparency that allows multinationals to spot trends, meet regulatory requirements, optimize risk transfer processes and realize financial savings. The technology helps them make decisions that keep their operations safe.

“If I’m a risk manager and my risk management information system is connected to Zurich’s API, I literally have real-time transparency of my portfolio with Zurich at my fingertips,” said Armin Schaefer, Zurich’s Head of Digital and New Technology for International Programs. “I don’t have to waste time pulling together reports from different areas just to get to the point where I have a complete picture and can start to optimize my risk transfer and make decisions.”

API connectivity is making work easier for risk managers and their intermediaries, agreed Marcus Reichel, Global Head of Insurance Management at the Knauf Group, a global building materials manufacturer headquartered in Germany. “My wish is that collaboration with insurance carriers in the future will require an automated data exchange. An API connection leads to efficiency gains and cost savings by reducing error-prone manual data transfers and misinterpretations of data”, he said.

Zurich began offering API technology around three years ago after a pilot with Switzerland-based Nestlé that allowed the exchange of information between the insurer and its customer through its risk management information system (RMIS).

“For Nestlé, directly connecting to Zurich via API has led to significant efficiency gains in insurance administration, both at head office and within our country entities,” said Barbara Speth, Nestlé’s Regional Insurance Manager and General Manager Reinsurance Captive. “As a next logical step, we want to leverage API to drive efficiency and control for our reinsurance captive.”

Since the Nestlé pilot, the popularity of the process has grown as other companies adopted the technology and word spread among risk managers and their brokers.

“We have gotten tangible feedback in terms of the value of API connectivity since the pilot,” said Mr. Schaefer. “We now have a lot of experience with this type of connectivity and that has helped us further develop the system and make it even more of a value-added service for our customers.”

The technology’s popularity is driven partly by risk-based regulations adopted under Solvency II that demand detailed reporting. “Risk managers need to be able to efficiently respond to those regulations. It is more important than ever to have information that is readily available,” said Mr. Schaefer.

“There’s been a big shift recently,” he noted, “as risk managers recognize the value of API connectivity. They are showing a lot of interest in the benefits of connecting their RMIS with Zurich through this technology. It’s a value-added service that hits the nail on the head in terms of helping risk managers survive in the world with less resources and at a time when there is a push to be more efficient in decision-making, risk transfer and the cost of managing risk.”

“It’s common that in a discussion around risk management information systems, the topic of API connectivity with Zurich will arise,” said Mr. Schaefer. “It’s an aspect of our service that differentiates us in the insurance and risk management marketplace.”