The verdict in three sentences
A public quoting and binding API lets an insurer sell its policies where customers already buy: bank branches, car dealerships, e-commerce checkouts. In London, a realistic budget sits between 80,000 and 150,000 GBP, developer portal and OAuth 2 authentication included, over 5 months. Profitability depends less on technology than on how many partners actually go live: the 15 partners in year one target must be driven commercially from launch.
What an embedded insurance API contains
Embedded insurance relies on three core calls: get a quote, bind a policy, retrieve documents. Around them, you need security, documentation and monitoring. The table below breaks down the components and their share of the budget.
| Component | Role | Indicative 2026 budget (GBP) |
|---|---|---|
| Quoting API | Real-time quote by profile and product | 18,000 to 30,000 |
| Binding API | Policy creation, payment, certificate issuance | 22,000 to 38,000 |
| OAuth 2 authentication | Per-partner tokens, scopes, revocation | 8,000 to 15,000 |
| Developer portal | Docs, sandbox, keys, usage statistics | 14,000 to 26,000 |
| Policy admin connector | Link to the core insurance system | 12,000 to 28,000 |
| Monitoring and quotas | Rate limiting, alerts, audit logs | 6,000 to 13,000 |
The policy admin connector is the most uncertain line: a modern system with its own web services lowers the bill, while a legacy platform with no interface requires a costlier middleware layer.
Timeline, compliance and business model
In the UK, the insurer remains supervised by the FCA and PRA and bound by UK GDPR under the ICO. Each partner, typically an appointed representative or introducer, must be contractually responsible for consent and fair value disclosures under Consumer Duty, and the API must log who requested what.
| Phase | Duration | Deliverable |
|---|---|---|
| Product and partner scoping | 3 weeks | API contracts, 2 pilot products (motor, travel) |
| Quoting development | 5 weeks | Quote API in sandbox |
| Binding development | 6 weeks | Policy issued end to end |
| Developer portal and OAuth 2 | 4 weeks (in parallel) | Self-service partner onboarding |
| Acceptance and load tests | 3 weeks | 50 requests per second validated |
| Pilot with 2 partners | 3 weeks | First policies in production |
On revenue, partners earn a distribution commission, often 10 to 20 % of premium depending on the product (2026 order of magnitude). The insurer trades margin for volume without opening a single branch.
Mini case study
Karim, digital director of an insurer in London, launches an API for travel and motor cover. Approved budget: 120,000 GBP, with annual maintenance at 15 %, or 18,000 GBP. Target: 15 partners within 12 months, including one bank, four dealer groups and ten online retailers.
Cautious assumption: 6,000 policies in year one, average premium of 220 GBP, so 1.32 million GBP in written premium. After a 15 % partner commission, 1.12 million GBP remains. With a 12 % technical margin, the contribution reaches about 135,000 GBP, which covers the build and first-year maintenance within roughly 14 months.
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FAQ
How much does a partner insurance API cost in London?
Between 80,000 and 150,000 GBP depending on the number of products and the state of the policy admin system. A scope limited to two products usually lands around 90,000 to 110,000 GBP.
Why OAuth 2 rather than a simple API key?
OAuth 2 grants precise rights to each partner and lets you revoke access in seconds. For personal data and binding contracts, it is the standard partner banks expect.
Do we need a developer portal from day one?
Yes if you target more than 5 partners. Without one, each integration ties up your team for 2 to 3 weeks, versus a few days with self-service docs and a sandbox.
What load should the API handle?
A 50 requests per second target is ample for 15 partners. Peaks mostly come from price comparison sites, which can multiply quote requests by 10.
Is a 5-month timeline realistic?
Yes for two pilot products and a policy system with existing interfaces. Add 6 to 8 weeks if the connector has to be built on a legacy platform.
Let's scope your project. Quoting and binding API, developer portal and OAuth 2 for 80,000 to 150,000 GBP, delivered in 5 months. 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.
