In 2022 we launched the first ever index tracking commercial insurance carriers with API enabled products. The index serves as a resource for brokers and technology partners on which carriers are at the forefront of insurance technology.
Over the course of 2022, we saw continued, rapid digitization across carriers and the products that they offer. There are now 155 API-enabled products across 57 carriers and 20 different lines of business on the index. Furthermore in 2023…
We’ve added 20 new carriers to the index, meaning they now offer at least one product that is API-enabled.
Insurance carriers with digital capabilities now collectively represent ~$100B+ of annual premium reflecting ~30%+ of the US commercial insurance industry1. Today, digital premium is still a small share. As the largest players in the space and new entrants both rapidly expand their digital capabilities that share will continue to grow.
The increase in the number of API enabled product offerings is reflected in both new entrants to the Index, such as Convex, as well as growth in products offered by incumbents, like CFC.
We’ve seen the largest increases in launches of the number of API-enabled products within the Speciality Lines. This includes Cyber, which continues to be one of the fastest digitizing lines, as well as PL and D&O, which is starting to come online in larger numbers.
In particular, Cyber has been at the forefront of digitization as many carriers are combining multiple sources of data to enable quick and automated underwriting. Furthermore, Cyber insurance also has become increasingly valuable as cyber attacks and data breaches grow in concern for business. With the Cyber insurance market projected to grow ~20% every year from 2020 to 20252, we expect the number of API-enabled cyber products to continue rapidly launching in 2023.
The growing index reflects a broader trend as the insurance industry continues to invest in technology and move toward a more digital future. Relentless technology advancement and ever-rising consumer expectations are reshaping the very definition of insurance3. In fact, the API index only captures one slice of technology developments happening in the insurance industry. Total insurtech investment was $8B globally in 20224, and we expect to see continued growth in digitization throughout the distribution ecosystem.
At Herald we’re excited to see the carriers on the index establishing themselves as leaders in digital transformation, capable of serving the expanding number of distributors who are also embracing innovation as well.
“We’ve continued to prioritize launching API enabled products. Being able to offer these products has becoming critical to meet the growing demand from brokers who are being more selective with carriers who have strong digital capabilities. As the insurance industry’s future heads towards this direction, we want to make sure we stand out as a leader” - Lindsey Nelson, Cyber Development Lead at CFC
If you are a carrier or MGA enabling connectivity via API, please contact us to be included in this list. We’d love to hear from you and we’d love for others in the industry to know what you’re building.
At Herald, we’re building a new infrastructure for commercial insurance. We are empowering carriers to deliver on their vision of becoming digital innovators. Our API platform provides a single point of connectivity from which carriers seamlessly and cost-effectively reach their full distribution ecosystem. We’re integration experts with a laser-focus on building API infrastructure and expanding the digital reach of carriers we support.
If you are a broker or technology provider looking to engage with your carrier partners via API, contact us to learn how we can help you connect to carriers that matter to you and dramatically accelerate your product development timelines.
Finally, if you haven’t already done so, check out the Insurance API Index itself!