They lead to enhanced member experiences, automated processes (resulting in less administrative work for brokers!), and, overall, a smoother benefits journey for all parties involved. API-driven carriers and benefits administration platforms offer superior service to brokers, employers, and employees: faster enrollment, reduced data errors, efficient account maintenance, and more.
It's all about ensuring that the solutions you bring to your clients are not just API-enabled but API-efficient, enhancing the overall member experience.
What's at Stake
APIs truly are the backbone of digital transformation, and we’re really just getting started.
APIs can streamline processes, reduce errors, and improve overall client satisfaction. However, if we as an industry fail to improve our API adoption rate, it could leave brokers and their clients lagging in a rapidly digitizing world. Over the next few years, there will be clear winners in the API development race among carriers and benefits platforms.
The Current State of API Adoption
And that’s an opportunity for brokers.
APIs sound ideal, so they must be everywhere, right? Not quite yet. Ideon and LIMRA recently surveyed leading carriers to provide a window into the industry’s current state of API adoption.
Those who embrace their role as technical advisors, directing clients to the best-integrated solutions, will leapfrog peers and become industry leaders.
The main takeaway: Most ancillary and voluntary benefits carriers are developing APIs, but the actual adoption and usage of those APIs remains quite limited. For example, while 76% of carriers report having API connectivity with external platforms, only 8% use it for most or all of their transactions. A review of data exchange speed tells a similar story. Despite almost half of carriers claiming realtime capabilities, 84% stated that the majority of their benefits data is not processed in real-time. And speed like this really makes a world of difference. When updates can be implemented in days instead of months, brokers can say ‘yes’ to lastminute client requests for plan changes or even adding a new benefit. Overall, there’s a strong foundation for widespread adoption of APIs. However, there’s still much work to be done in order for most brokers, HR teams, and employees to reap the benefits. Decoding Broker Needs and Knowledge Gaps Adoption may be limited now, but the tide is turning. Brokers don't need to know the nittygritty, technical details about APIs, but understanding the basics and asking the right questions is essential. When discussing APIs with carriers, tech vendors, or clients, focus on the types of data exchanged, the frequency of data synching, and whether your client’s preferred carrier-platform combinations are supported by APIs.
After all, the shift towards API connectivity is not merely an upgrade – it's a transformative change in the way the industry does business, a realignment to match the digital expectations of today's employees. It’s worth being at the forefront of such a monumental moment.
A Look Ahead Understanding APIs is not just about keeping up with the latest buzzword or technology; it's about moving the entire industry toward a more connected, efficient future. All industry participants—brokers, carriers, technology platforms—must embrace and advocate for effective API utilization. Stay tuned for another article next month, where we'll delve into how we can collectively push forward in this journey.
