NEW YORK–(BUSINESS WIRE)–When it comes to API adoption, the employee benefits industry is maturing, albeit slowly, according to a new study from LIMRA and Ideon. The 2023 Employee Benefits API Maturity Report surveyed 25 leading workplace benefits carriers to assess the industry’s current API adoption, how close it is to real-time connectivity, and where leading opportunities exist for innovation.
The industry-first benchmark of medical, ancillary, and voluntary benefits carriers provided an API maturity score that measures the depth of carriers’ technological integration, evaluating factors like real-time data processing, API connectivity with external partners, and the degree of automation in their systems and data exchange procedures.
Specifically, carriers’ API maturity was ranked at five levels: nascent, developing, maturing, advanced and leading. Overall, the majority of carriers (56%) are “maturing,” with twice as many “developing” (24%) than “advanced” (12%). Additionally, although a vast majority of carriers (76%) report having API-enabled external connectivity, the actual utilization of APIs for their transactions remains extremely limited: only 8% of respondents said APIs are used for most or all of their external connectivity. This highlights a significant opportunity for the industry: embracing full-scale API utilization would lead to faster, superior member experiences and more efficient operations for carriers and 3rd-party platforms.
“These report findings underscore what we see every day: Most carriers are embracing the API revolution, but there’s still a vast untapped potential to meet the rising digital expectations of members, employers and brokers,” said Michael W. Levin, co-founder and CEO of Ideon. “The fact is, broad API utilization is, and will continue to be, a must-have for carriers seeking to win and retain business. The opportunities are there, and this survey pinpoints where carriers will get the biggest return on their API investments.”
Key findings include:
- The gap between API development vs. adoption remains large: While 76% of carriers have some degree of API-enabled external connectivity, only 8% of respondents use APIs for most or all external connections.
- Real-time data processing is limited: Although 48% have real-time data exchange capabilities, only 16% said most or all transactions are processed in real time.
- EDI remains the dominant method for transmitting enrollment data: 88% of carriers use EDI, vs. 60% of carriers that use APIs to send and receive enrollment information. The overlap indicates that most carriers employ multiple methods, including some that still use paper and spreadsheets.
- Digital enrollment presents a sizable opportunity: 32% of carriers do not offer the ability to digitally manage enrollment and change events.
To read the full report, please visit: https://get.ideonapi.com/ideon-limra-2023-report
Ideon is the way health insurance carriers and employee benefits providers connect with technology partners to deliver seamless consumer experiences at every stage of the member journey. Ideon is not the websites or apps one uses to choose a plan or find a doctor. It is the infrastructure, the ‘pipes,’ that simplify the complex exchange of quoting, enrollment, and eligibility data between carriers and the technology partners so that they can, in turn, deliver health and employee benefits to hundreds of millions of Americans everyday. Ideon’s APIs transmit billions of data points between InsurTechs and insurance carriers, powering an amazing benefits experience for all. Faster. Better. Awesomely. To learn more, please visit: www.ideonapi.com.
Serving the industry since 1916, LIMRA offers industry knowledge, insights, connections, and solutions to help more than 700 financial services member organizations navigate change with confidence. Visit LIMRA at www.limra.com.