Sep 25, 2020

How do insurance carriers upgrade legacy tech without sacrificing growth?

How do insurance carriers upgrade their internal legacy systems without sacrificing future growth? The primary answer lies in the investment of API solutions that provide multiple connections, improved speed and accuracy, and unprecedented scalability.

Today, there are more digital distribution opportunities across the benefits ecosystem than ever (see our market map). When we talk to insurance companies, they describe a self-reinforcing cycle: growing today requires investing in legacy standards like EDI, which furthers the dependence on costly, manual processes. This technical debt accumulates making it increasingly harder to adapt to a changing landscape and capture new opportunity.

We’ll explore this dilemma and how carriers can accelerate growth without having to tear down their existing systems or invest in short-sighted solutions.

Building on legacy systems is a compounding problem

Upgrading data connections with benefits software partners usually means building one-off, custom integrations that either attempt to bolt APIs on to file feeds and other manual systems or rebuild new infrastructure from the ground up. This is incredibly resource intensive which is why many carriers opt to double-down on legacy technologies. While this solves short-term needs, it creates major obstacles for future growth. Here's why:

Point-to-point integrations don’t scale

It’s expensive and time-consuming to build bespoke connections with each benefits software partner. This often means pulling engineering and operations teams away from high-value projects and dedicating valuable resources to plan integrations that require constant maintenance and upkeep. Most insurance companies would prefer to focus on the member experience, not complex IT infrastructure that requires niche software expertise.

Members and technology partners get stuck with a poor experience

Requiring partners to build into messy, error-prone systems increases the operational burden for everyone. The relationship suffers under a siege of long build times, high maintenance costs, frequent outages, security risks, and difficulty resolving issues. When these problems result in delayed or disrupted coverage for members, retention suffers too.

It’s short term gain for long term pain

Carriers need better connections–not just more connections–to keep pace with digital distribution. Creating more “integrations” that rely on outdated tech (file feeds, portals, pdf and paper-based systems) only increases the amount of internal migration work needed to eventually upgrade these systems. As the world of connected insurance rapidly evolves, technical debt is your worst enemy.

APIs enable transformation at scale

APIs provide a standardized way for two applications to exchange information, and that data can be instantly synced across any connected system. Virtually any codebase capable of HTTP requests can access APIs, making them ideal for scaling connections between fragmented platforms.

You don’t have to look far to see how APIs have transformed entire industries. One can argue fintech didn’t become “fintech” until companies like Plaid and Stripe introduced the API infrastructure that enabled an entirely new ecosystem of ecommerce and financial apps. This Crunchbase article explains how the same trend is happening across insurtech.

So, why APIs for insurance? ‍

  • Speed of initial setup and ongoing transactions.

    Process transactions and install new policies programmatically without relying on error-prone methods that take days to sync. Customers who are used to waiting weeks to confirm coverage can see their enrollments (and their member id) within seconds.

  • Improved accuracy, transparency, and security.

    Build in upfront data validation, business rule logic, and have granular insights into the status of transactions. Enable more comprehensive, nuanced security controls.

  • A scalable middle layer.

    Connect new partners using a modern digital standard without building deep integrations into the existing tech stack. Update legacy tech behind-the-scenes without disrupting existing connections.

You can have APIs and your roadmap too

Upgrading internal systems and developing a robust suite of APIs is a multi-million dollar investment that can take years to complete. This is a time when insurance companies face a rapidly evolving market and need to move quickly to capitalize on new technology partnerships.

Noyo has built flexible API infrastructure so carriers can offer modern, digital experiences no matter the technology they rely on today. Noyo acts as a one-to-many, middle-layer between insurance companies and their external partners, powering seamless data exchange across each step of policy administration. With a scalable API-layer in place, carriers can safely transform their systems behind-the-scenes while growing and scaling connections simultaneously. Digital transformation doesn't have to come at the expense of growth.

This is why carriers like Humana, Ameritas, Guardian, and Beam Dental chose to partner with Noyo:

  • Flexible and scalable.

    Noyo provides modern infrastructure that flexibly integrates with any enterprise system (no APIs required). Setting up new platform connections is also lightning fast: turn on a new benefits partner in 2-3 weeks.

  • Fast, accurate data transfer

    Legacy systems burden ops teams with errors and slow, manual processes. Noyo unlocks real-time data exchange along with embedded features to proactively validate and audit data, elevating discrepancies before they impact customers. Our partners have spent 50% less time addressing errors with Noyo.

  • Transparency and control.

    Ops teams need insight into the status and volume of transactions for a given channel. Noyo delivers custom features that automatically confirm transactions are completed as intended, as well as tools for understanding the status of each request. You have the real-time insights your team needs to offer the best member experience possible.

  • A complete solution from the start.

    Technology partners want APIs that cover each business case. Noyo is a comprehensive solution for benefits administration, from installation to renewal. See how Noyo covers each step of policy administration.

Benefits software platforms want to partner with insurance companies that make processes easier, faster, and more transparent. Get to market with API infrastructure that accelerates your business and your roadmap.

Reach out to our team to learn more about Noyo’s solutions.

If you do benefits, you need Noyo

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