Bridging the gap: How brokers, carriers, and tech platforms can accelerate API integration
The employee benefits landscape is undergoing a major transformation, with APIs (Application Programming Interfaces) at the heart of this evolution. These powerful tools enable seamless data exchange between carriers, HR platforms, and benefits administration systems, making benefits management more accurate, efficient, and real-time.
Despite the tremendous promise of APIs, adoption across the industry is still in the early stages. Carriers and technology platforms have the capabilities to utilize APIs, but in practice, many are only scratching the surface. As someone with over 25 years of experience in the benefits and technology sectors—most notably through my time at Benefitfocus and Ideon, where we solved for connectivity challenges—I’ve seen firsthand how crucial it is for the industry to fully embrace the potential of API-driven solutions.
So, what does the future of APIs in benefits look like, and how can we accelerate adoption across the ecosystem? Let’s explore the key actions needed to unlock the full power of APIs for brokers, carriers, and technology platforms alike.
Bridging the gap: From capability to full adoption
While the benefits industry has made significant strides in API development, the adoption rate remains disappointingly low. According to a recent survey from Ideon and LIMRA, most group benefits carriers are either developing or already have APIs in place. However, only a small percentage are leveraging them extensively for core transactions. This gap between capability and utilization is holding the industry back from realizing the full potential of APIs.
In order to accelerate adoption, stakeholders need to benchmark their efforts against the broader industry. In the Ideon-LIMRA survey, participants were provided with competitive report cards, showing exactly where they stand in their API journey. Armed with this data, carriers, brokers, and tech platforms can begin to map out the steps necessary to ensure APIs are integrated more effectively.
For carriers: Innovating with purpose and clarity
Carriers are at the center of the benefits ecosystem, and their adoption of APIs is critical for the success of the entire industry. As digital leaders in the voluntary benefits space, companies like Pacific Life, Guardian, and Sun Life have made considerable investments in API development. However, the adoption of these technologies remains inconsistent.
Here’s how carriers can lead the way in API adoption:
1) Prioritize API features that matter most
Carriers need to identify and prioritize the most impactful API features that benefit their partners and enhance the user experience. APIs for initial enrollment, eligibility updates, case setup, and Evidence of Insurability (EOI) decisions are some of the most requested functionalities that can streamline the benefits process. Focusing on these high-impact features will help carriers drive industry-wide adoption.
2) Simplify the integration process
Carriers must make the integration process as seamless as possible for HR platforms and tech partners. This involves offering clear documentation, streamlined key management, and dedicated support for developers. By making it easier to integrate APIs, carriers will ensure that technology platforms prioritize their solutions, which benefits everyone across the ecosystem.
3) Make API connectivity a competitive advantage
Carriers should leverage their API capabilities as a major selling point in their marketing materials to brokers and employers. Educating stakeholders about the efficiencies and member experience improvements APIs offer will help foster deeper relationships with brokers and tech partners, driving broader adoption across the industry.
For brokers: Leading the charge as tech-savvy advisors
Brokers are in a unique position to drive the shift towards API adoption. By leveraging their expertise and understanding of the evolving benefits landscape, brokers can guide clients toward the best API-enabled solutions. You don’t need to be a technical expert to advise on APIs, but a basic understanding of their benefits—and the ability to ask the right questions—will differentiate you as a forward-thinking advisor.
To advocate for the right solutions, brokers must focus on:
How frequently data is exchanged.
The speed at which data is processed.
Whether the client’s preferred carriers support API integration.
APIs are no longer a “nice-to-have” feature; they are a critical component of modern benefits administration. Brokers who understand this and can educate clients accordingly will become key players in this digital transformation.
For benefits technology platforms: Building the future of connectivity
The role of benefits technology platforms cannot be overstated. These platforms sit at the intersection of carriers, HR systems, and employees, making their ability to integrate seamlessly with API-driven carriers crucial for the success of the entire ecosystem.
Benefits technology platforms should focus on:
Expanding their connectivity with various carriers and benefits solutions.
Supporting real-time data exchanges to improve efficiency and reduce errors.
Simplifying user interfaces for HR teams, brokers, and employees.
As the bridge between carriers and end-users, benefits platforms have a significant responsibility to ensure the smooth integration of API technologies. By prioritizing connectivity, they help create a more efficient and user-friendly benefits ecosystem.
What’s at stake: The importance of accelerating API adoption
As we look to the future, the shift to API-based benefits administration isn’t just about technological improvement—it’s about transforming the way we deliver value in the benefits ecosystem. Carriers, technology platforms, and brokers all play an essential role in ensuring the success of this transformation.
The benefits industry is evolving quickly, and those who fail to embrace API connectivity risk falling behind. With real-time data, fewer errors, and automated workflows, APIs are the key to a more efficient, member-friendly future.
The opportunity is clear: brokers and other stakeholders who advocate for APIs, help educate the market, and push for broader adoption will position themselves as leaders in a rapidly digitizing space.
Looking ahead: Embracing a connected, efficient future
Drawing on my 25+ years of experience in benefits and technology—especially from my time at Benefitfocus and Ideon, where I worked on solving some of the key connectivity challenges—I’m convinced that API adoption is the key to the benefits industry’s future. Now is the time for all of us to collaborate and accelerate adoption to ensure the benefits ecosystem is ready for the digital future.
It’s time to push forward. Let’s accelerate API adoption and create a more connected, efficient, and innovative benefits experience for all stakeholders.