6 minute read
Call to Action: Accelerating API Adoption in the Benefits Industry
By Meg Collins, Chief Growth Officer at Ideon
Last month in the Voluntary Benefits Voice, I explored the transformative role of APIs (Application Programming Interfaces) in reshaping the employee benefits industry. To summarize: Insurance carriers and HR, payroll, and benefits administration platforms use APIs to exchange essential data information about employees, their eligibility, and the benefits in which they’re enrolled.
Compared to EDI and other traditional means, APIs exchange information more accurately and in real-time, ultimately leading to better member and broker experiences, not to mention operational efficiencies for carriers and their technology partners.
However, our journey towards fully leveraging the power of APIs is just beginning. In a groundbreaking survey conducted by Ideon and LIMRA last year, we discovered that while nearly all group benefits carriers are developing or already have APIs, the reality of their usage paints a different picture. Only a small percentage of carrier and tech partner connections are utilizing these APIs extensively, indicating a gap between capability and utilization.
So, how do we bridge this gap and bring the advantages of APIs to more members?
First, each stakeholder needs to gauge how their transformation efforts stack up against competitors. In fact, participants in the Ideon-LIMRA survey received personalized, competitive report cards, detailing where they are on the API advancement curve.
Once the competitive landscape is well defined, the path forward involves concentrated efforts from carriers, benefits technology platforms, and brokers. Each plays a pivotal role in turning the tide towards widespread API adoption.
For Carriers: Innovate with Purpose
Insurance carriers are rarely viewed as vanguards of digital innovation, but that's beginning to change. Carriers are increasingly becoming digital leaders, especially in the worksite and voluntary benefits space, where Pacific Life, Guardian, Sun Life and others have heavily invested in APIs. There's been a ton of progress, but carriers must be highly strategic in their API development to drive industry-wide adoption.
Here are three recommendations for carriers:
Prioritize Impactful API Functionality. Determine which API functions are most crucial to your partners, operational efficiency, and significantly enhance the member experience. For example, some carriers may focus on APIs for initial enrollment and eligibility updates, while others may prioritize case setup or EOI decisions, based on specific needs.
Ease the Connectivity Burden. Recognize that HR and benefits platforms are balancing many priorities. Simplify API integration with clear documentation, streamlined key management, accessible development guides, and a dedicated support contact for developers. This makes your APIs more attractive, leading to higher priority on tech partners’ roadmaps.
Make APIs a Marketing Focus. Make API connectivity a central theme in your communications with brokers and employers. Transform these stakeholders into API advocates by educating them on the efficiencies and benefits APIs offer, thereby influencing external partners to prioritize developing to your APIs.
For HR and Benefits Administration Platforms: Streamline Integration Processes
HR systems and benefits administration platforms are critical in this digital transformation, often serving as the first point of engagement for members. Companies like PlanSource, ADP, Rippling, and several others have API connectivity with carriers and yet, even for these leaders, there’s much work to be done. Here’s how benefits platforms can spur greater API adoption:
Provide Ample Connectivity Support. Success in API-enabled partnerships hinges on collaboration and technical alignment. Platforms must provide comprehensive support during carrier integrations, offering user-friendly development guides and robust technical assistance.
Align Roadmap with Customer Needs. Balance development priorities by focusing on carriers and functionalities that offer the most significant benefits to your customers. Consider partnering with middleware providers, like Ideon, to launch additional, more modern carrier connections without using internal resources.
Choose Partnership Over Profit. Let’s say the quiet part out loud: In the benefits administration world, some platforms have monetized carrier connectivity. In these cases, revenue potential can be a major factor in which carriers get roadmap priority. In my view, carriers with better technology and API capabilities should get preferential treatment the positive impact on members is too significant to ignore.
Position APIs as a Competitive Differentiator. Brokers and employers, in most cases, don’t need to get into the weeds about digital connectivity. So don’t just market APIs as your shiny new toy instead, explain the key benefits of having incredible, modern connections and a robust carrier network. Talk about speed, efficiency, group setup times, automation, data integrity then you’ll be speaking their language.
For Brokers: Embrace Your Role as API Champions
Brokers have a unique influence in driving API adoption, with key actions including:
Educate and Advocate. Stay informed about the advantages of APIs and champion their use in carrier and BenAdmin evaluations and RFPs. Recommend to your clients carrier-and-BenAdmin combinations that work together seamlessly.
Ask The Right Questions. When gathering client proposals, it's crucial to inquire about the API capabilities of carriers and their technology partners. Questions such as "What functionalities do your APIs currently support?" and "What's on your API roadmap for the next 1-3 years?" can provide valuable insights into their commitment to digital connectivity and future plans.
Influence Industry Direction. Your recommendations and business decisions significantly shape carrier and platform priorities. Guide the industry towards an integrated, efficient future by being vocal about your and your clients’ connectivity needs.
A Collective Effort Towards a Digitally Transformed Future
The path to comprehensive API integration in the employee benefits industry demands concerted efforts from all stakeholders. Carriers and technology platforms must innovate, integrate, and strategize, while brokers need to educate and advocate. Collaboration between all three cohorts will ensure the industry not only adapts to but thrives in the digital era.
As we navigate this journey together, the focus should remain on how all this transformation fosters better member experiences that’s the ultimate goal. And I believe with the utmost conviction that strategic, well-planned API development is the catalyst for reaching that goal. Let's embrace this opportunity to lead the industry into a new era of digital excellence.
Meg Collins, Chief Growth Officer, Ideon - Formerly a broker and leader at Benefitfocus, Meg brings her unique perspective to her current role leading sales and marketing at Ideon. Driven by her firsthand insights into the industry’s outdated data connectivity, her mission is to champion modern, API-powered data exchange for carriers, benefits platforms, and brokers, ultimately driving better outcomes for the most important stakeholder: the member.
