This submit is a part of a collection sponsored by AgentSync.
So that you’re contemplating constructing your individual integration to circulate producer information from insurance coverage business sources of fact instantly into your distribution channel administration (DCM) workflows. Whether or not the query of information is only one piece of a bigger “construct versus purchase” debate, or the lacking piece that’d make your in-house software program construct absolutely practical, it’s an advanced a part of the equation and deserves cautious consideration.
Observe: If information is simply the tip of the iceberg and also you’re actually contemplating constructing your individual insurance coverage distribution channel administration software program in-house, learn this primary.
So, whether or not you’ve efficiently constructed your individual in-house DCM system otherwise you’ve already received an answer and simply have to plug probably the most correct producer information into it, right here’s what you must find out about taking the DIY route in the case of information.
Your system’s solely pretty much as good as its information supply
For a profitable distribution channel administration technique, entry to correct, up-to-the-day information throughout your programs isn’t only a “good to have”; it’s a necessity. For companies and carriers, crucial information contains producer information from the Nationwide Insurance coverage Producer Registry (NIPR), together with license data for dually licensed broker-dealers from FINRA, persevering with schooling necessities from state-approved CE distributors, and extra.
To extend operational effectivity, these information factors should be out there throughout insurance coverage organizations when and the place employees is validating data, checking compliance, or making appointment or termination selections. By integrating distribution channel information into core programs, insurance coverage enterprises enhance its usefulness and drive better effectivity of their distribution channel administration technique.
Today, it’s fairly normal for commercially out there DCM options to supply some degree of synchronization with the Nationwide Insurance coverage Producer Registry in order that carriers and companies can function off probably the most correct licensing and compliance information. For these which might be absolutely devoted to constructing core infrastructure themselves, it’s attainable to get the information you want fed into your system by constructing your individual integration. Nonetheless, that doesn’t imply it’s fast, simple, or value efficient. Nor does it assure the information will likely be correct, full, or simple to interpret.
4 causes to suppose twice earlier than constructing your individual information integration
Motive 1: As a result of maintaining with regulatory adjustments is its personal problem
The world of insurance coverage compliance regulation is ever-changing. Working example: In 2024, AgentSync tracked over 300 distinctive state adjustments to producer licensing and compliance in our Compliance Library. Our group then mirrored every of these updates again into our merchandise so our clients might proceed working off of probably the most up-to-date compliance information. A lot of distribution channel administration comes right down to navigating these regulatory adjustments and mitigating the danger of noncompliance. If you happen to select to construct your information integration, then you definitely’re in the end answerable for ensuring these 300-plus related adjustments to licensing, appointments, persevering with schooling guidelines, and extra are mirrored in your programs—a problem that solely multiplies as you develop your distribution pressure by bringing on extra producers, licensed in additional states, and for extra traces of authority.
Construct by yourself and never solely are you answerable for monitoring, deciphering, and adapting to regulatory adjustments, however you’re additionally answerable for any penalties you face for failing to seize and act on them.
Motive 2: As a result of it’s going to value you extra in the long term
“We are able to get monetary savings by constructing it ourselves” is a standard, but typically inaccurate perception in the case of the construct versus purchase debate. Whereas it’s true that constructing your individual integration would possibly seemingly include decrease upfront prices, the continued upkeep and information contextualization wants of a DIY information integration together with the longer implementation time are going to drive up the overall value of possession in the long term.
To visualise, let’s say you rent a full-time engineer and pay them a wage of $100,000 to construct your information integration. It takes that engineer 12 months to construct the combination, and then you definitely determine to maintain them in your payroll for 10-15 hours per week to deal with future upkeep wants. You additionally rent a part-time admin to watch ongoing state rule adjustments and replace your information integration to make sure your group stays compliant (See Motive No. 1). Now you’ve added at the very least two further bills to your finances that would have been prevented just by partnering with the correct vendor.
Motive 3: As a result of not everybody speaks state regulatory information
NIPR’s Producer Database (PDB) is an enormous trove of knowledge. It homes historic information for lots of of hundreds of producers, a lot of whom are licensed throughout a number of states and with a number of traces of authority (LOAs), and appointed with a number of carriers. Primarily, looking for the precise information you’re searching for is like looking for a needle in a haystack.
When you handle to seek out what you’re searching for, you’ll have to spend much more time decoding the uncooked information in order that it is smart on your function. The PDB has its personal language and distinctive codes for each piece of information. Until your concept of a very good time is spending hours upon hours researching whether or not an Oregon resident license with a casualty LOA is the equal of a Texas P&C license, or whether or not auto insurance coverage is separated into a private traces license or included beneath a P&C license in Nebraska, you would possibly wish to rethink managing all of this information by yourself.
Motive 4: As a result of issues break down
Constructing a knowledge integration in-house is a big challenge that may take a number of months, if no more to finish, not to mention begin seeing any return on funding. After which there’s the continued upkeep and assist you’ll have to dedicate to sustaining it. Even a platform as strong because the PDB incurs upkeep occasions that may affect the accuracy of the information it gives or the circulate of that information into your programs.
Throughout the first half of 2025, the AgentSync group flagged a number of NIPR integration upkeep alerts with the potential to delay our shoppers’ operations. Our group completes the troubleshooting and upkeep work on behalf of our shoppers, usually earlier than they even discover there’s a problem. However organizations that select to construct their information integration in-house might lack the assist networks wanted to answer these sorts of occasions in a well timed method. So earlier than constructing by yourself, ask your self how a lot effort and time you’re capable of put into ongoing upkeep. If the reply is little to none, know you possibly can face important operational downtime when a problem arises.
Moreover, a lot of the information housed in NIPR is taken into account Protected Private Data, or PPI. Exposing or mishandling PPI is a giant no-no that would trigger hurt or loss for a person. Poorly managing any ongoing upkeep on your in-house information integration will increase your group’s danger of a cybersecurity slip and consequent lawsuit.
Find out how to energy your programs–homegrown or bought–with the perfect information
If you happen to’ve learn this far, you might be feeling a bit of hesitant about constructing your individual information integration to energy your distribution channel administration workflows. However what different selections do you might have? You may swap out your complete tech infrastructure for an answer with the information layer baked in. However it hardly is smart for organizations which have already invested important money and time into growing their core know-how to throw the whole lot out and begin anew.
The higher choice: Utilizing AgentSync’s ProducerSync API (PSAPI) to energy your present infrastructure with probably the most fashionable and correct business information.
PSAPI gives accurate-to-the-day NIPR information to no matter you join it with. Which means you possibly can plug it instantly into your present DCM software program with out spending the money and time to create and keep your individual integration. Whether or not you’re beginning to contemplate what it’ll take to construct your individual software program (together with the information portion), otherwise you’ve already received software program and try to determine whether or not to maintain utilizing your present information supply, AgentSync PSAPI gives the next benefits over creating your individual information connection:
- Immediate entry, able to go when you find yourself: Constructing your individual NIPR integration may be all-consuming and take your focus away from key enterprise features. With PSAPI, you get rapid entry to the information you want, when and the place you want it.
- Contextualized layer makes producer information extra actionable: PSAPI routinely contextualizes uncooked NIPR information so carriers and companies can reply crucial questions on their distribution channels, like which producers they need to pay to reappoint and whether or not there are any geographical or LOA gaps of their present distribution technique.
- Constructed-in regulatory updates: By no means fear about maintaining with the lots of of state rule adjustments every year ever once more. AgentSync does it for you and routinely displays any adjustments that’ve occurred instantly into your information.
- 24/7 upkeep assist: Our assist group works behind the scenes to make sure any integration points are resolved earlier than they intervene along with your day-to-day operations.
- Ongoing information safety and authentication: AgentSync gives multi-factor authentication and single-sign-on capabilities, in comparison with counting on usernames and passwords every time you log into NIPR.
To study extra about powering your distribution channel administration workflows with PSAPI, schedule a customized session with one among consultants as we speak.
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