The verdict in three sentences
A secure partner API for a London insurer costs GBP 45,000 to 85,000, plus about GBP 8,000 for a developer portal and documentation, delivered in 4 months. It lets 40 brokers and 3 banks issue motor and travel policies from their own software, with issuance time cut from 2 days to 5 minutes. The real challenge is governance rather than technology: underwriting rules, per-partner limits and premium reconciliation.
Why brokers and banks expect an API
The CIO of a London insurer sees brokers sending requests by email with scanned driving licences and vehicle details. An underwriting assistant re-keys them into the policy admin system, prices the risk, issues the certificate and sends it back. Average lead time: 2 working days, sometimes 4 at month end. Meanwhile the customer goes to a competitor that issues online.
The 3 partner banks want to offer travel and motor cover at the point of sale inside their mobile apps. They will never redirect customers to a third-party site: they require an API.
| Metric | Before API | After API (6 months post-launch) |
|---|---|---|
| Motor policy issuance time | 2 days | 5 minutes |
| Policies issued per month via partners | 2,200 | 3,800 |
| Manual re-keying | 100% | under 15% |
| Pricing errors | 4% | under 0.5% |
| Broker premium reconciliation time | 45 days | 10 days |
| Staff assigned to issuance | 9 | 4 |
What the GBP 45,000 to 85,000 budget covers
The range depends on the policy admin system (existing API or a database to expose), the number of products (motor only or motor plus travel) and the banks' security demands, which usually require an external audit.
| Work package | 2026 range (GBP) | Detail |
|---|---|---|
| Discovery, product and rules modelling | 5,000 to 9,000 | Rates, covers, exclusions, limits |
| Quote and bind API (REST) | 17,000 to 32,000 | Quote, bind, PDF certificate, cancellation |
| Policy admin system connector | 10,000 to 21,000 | Policies, premiums, claims notification |
| OAuth2 security, logging, quotas | 6,000 to 12,000 | Per-partner keys, full audit trail |
| Payments (cards, open banking) | 3,000 to 6,000 | Direct collection or broker settlement |
| Testing, security audit, go-live | 4,000 to 5,000 | Load tests, UAT with 2 pilot partners |
| API subtotal | 45,000 to 85,000 | 4 months |
| Developer portal and documentation | about 8,000 | Sandbox, examples, call monitoring |
| Monthly maintenance | 1,500 to 2,600 | Monitoring, fixes, new versions |
Architecture choices that drive the cost
| Option | Indicative cost | Best for |
|---|---|---|
| Expose the policy admin system directly | GBP 20,000 to 32,000 | Modern system with native API, few partners |
| Dedicated API layer (recommended) | GBP 45,000 to 85,000 | 40 brokers, banks, several products |
| Managed cloud API gateway | GBP 400 to 1,000 per month extra | Quotas, monetisation, high volumes |
| Broker web portal without API | GBP 26,000 to 42,000 | Brokers without software, no banks |
| API plus broker portal | GBP 68,000 to 110,000 | Mixed partner network |
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The dedicated API layer isolates the policy admin system: if the insurer replaces it in 3 years, partners notice nothing. FCA expectations on operational resilience and Consumer Duty, plus UK GDPR, are easier to meet with centralised logging and clear product rules.
Mini case study
Oliver, CIO of an insurer in London, invests GBP 68,000 in the API, GBP 8,000 in the developer portal and GBP 2,000 a month in maintenance. After 6 months, partner-issued policies rise from 2,200 to 3,800 a month. With an average premium of GBP 420 and a 12% technical margin, the 1,600 extra policies bring about GBP 80,600 of margin a month. Issuance also frees 5 of 9 staff, redeployed to claims, worth 5 x GBP 3,500 = GBP 17,500 a month. Even crediting the API with only half of the growth, the monthly gain exceeds GBP 50,000: the GBP 76,000 project pays back in under 2 months.
FAQ
Do we need to replace our policy admin system to get an API? No, the API layer plugs into the existing system through its web services or an intermediate database. The connector represents GBP 10,000 to 21,000 depending on its age.
How do we stop a broker from binding outside its authority? Each partner gets OAuth2 credentials with rights per product, sum insured limits and daily quotas. Any out-of-rules request goes to manual referral.
Do banks require a security audit? Almost always. Budget GBP 4,000 to 8,000 for an external penetration test, often included in the testing package.
Can customers pay at the point of issuance? Yes, the API can trigger card or open banking payment at bind, or let the broker collect and settle at month end. Integration costs GBP 3,000 to 6,000.
How long to onboard a new broker? With a developer portal and sandbox, a broker on modern software connects in 1 to 3 weeks, versus 2 to 3 months without documentation.
Let's scope your project. Tell us your products, your policy admin system and your number of partners: we will price an API between GBP 45,000 and 85,000 with a 4-month plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
