Application programming interface technology — software that allows different computer systems to "talk" to each other and share data — may be one of the hottest trends in the voluntary benefits industry. Less than two-thirds of carriers surveyed for Eastbridge's new "Application Programming Interface & Artificial Intelligence Carrier Practices" Frontline™" report are using APIs now, but nearly all respondents expect to in the near future.

If the carriers you partner with aren't already on board with this emerging technology — or actively planning to incorporate it into their operations — they could be setting themselves up for a competitive disadvantage. Here's what you need to know about APIs in the voluntary market.

Where carriers are using APIs

The majority of carriers using this technology do so to facilitate enrollment and verify evidence of insurability. A significant number also find it useful for making demographic changes and applying the appropriate product rules and rates. Relatively few are using it for billing, policy set-up, or rating and quoting — so far. But it's reasonable to assume that as the capabilities of and comfort with APIs grows, so will its applications. In fact, most carriers already using this technology say they've added one or more new APIs in the last year, and some have also expanded the capabilities of existing APIs.