Connectivity Rails

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Creating a Linked Industry

The life insurance and annuities industry is evolving rapidly. For the foreseeable future, change is the only constant. It is hard to predict what is on the horizon. But we can see one thing clearly, the industry is on the brink of a transformation — one that will redefine how carriers, distributors and advisors do business.

Open architecture platforms, application programming interface (API) connectivity and standardized data rails are innovations that promise to reshape the way carriers and distributors manage their sales workflows and processes. This connected future will offer exciting benefits to everyone involved, and it’s coming sooner than you think.

The Age of Connectivity and Open Platforms 

Carriers, distributors and advisors in the insurance industry can all agree on one thing: The status quo of the insurance sales process does not hold up against customer expectations, largely due to the decades of carriers and distributors investing in and building on fragmented and closed technology platforms. That’s why change has to happen. The industry must adapt to keep up with modern consumers or risk being left behind by them.

The cornerstone of this imminent evolution is APIs and embedded technology driving more digital connectivity and the breaking down of closed platforms. Modern technology thrives on openness and interoperability. The insurance industry is no exception.

The key to unlocking this connectivity is embedded APIs.

Already, forward-thinking companies are embracing this philosophy of connectivity. They are implementing technology platforms that use open architecture and driving those platforms with APIs. They are leveraging the power of transferable data and algorithms. Carriers and distributors can finally do away with the inefficiencies of disparate solutions. The future is interconnected systems powering one seamless workflow.

A Win-Win-Win Situation

The adoption of open architecture platforms and embedded APIs is a win for all sides of the industry.


Imagine building your products and business rules once and deploying them everywhere. That’s the power of APIs and embedded technology. Carriers can save time and costs by avoiding the need to rebuild for every distributor and every closed platform that exists today in the marketplace. Carriers can efficiently deploy new products or expand into new markets without the hassle of recreating everything every time.


For distributors, having the latest carrier products, rules and forms in their preferred system becomes a reality. They can embed these elements into the solution their advisors work in every day. Carrier form and rule changes update automatically. Advisors also have access to the latest regulatory requirements. Firms can relax knowing their advisors are working with the most up-to-date information. And they get to do it in a system they are comfortable with, alongside a workflow and customer experience they can still control.

Advisors are the driving force behind insurance sales, and APIs empower them like never before. The future is here. Advisors no longer have to visit multiple carrier sites or learn multiple systems. They can have everything they need within their preferred workflow: no more logging in and out of various platforms, and no more wasting time on administrative tasks. They can do more in less time and with less effort. And they can do it while making their clients happy with a better sales experience.

Embracing the Era of Standardization

As history has shown us, industries tend to standardize processes over time. Life insurance and annuities are no exception. As connectivity becomes more widespread, standardized data rails are the logical next step. These rails will serve as the backbone of the industry’s technological framework. They will enable seamless integration and communication between different systems.

This standardization is good for the industry. It levels the playing field. Think about standardized transactions in stock trading. Or Visa’s dominant role in credit card processing. Our industry is following suit. It will result in a more efficient and collaborative ecosystem.

Standardized rails free up the industry to compete on other fronts. With open platforms as the norm, we will begin to innovate in other ways. Consumers will get a more modern and streamlined sales experience, which is what they want.

A Call to Action

Open platforms and standardized connectivity rails are not a distant future. This evolution is already underway. Which leaves carriers and distributors with some critical questions.

  • Are you equipped with technology that empowers you with embedded API capabilities?
  • Can you build your products and rules once and deploy them anywhere?
  • Can you seamlessly embed industry-leading solutions into your preferred systems?
  • Is your technology open to integrating third-party APIs, avoiding the pitfalls of closed platforms?

Your answers to these questions will determine your competitive edge in the evolving landscape. The era of APIs and embedded connectivity is upon us. The insurance industry is undergoing changes that will leave no participant untouched. You can adapt and thrive or your competitors will leave you behind as they benefit from superior collaboration and efficiency.

You must be ready to embrace the future of insurance sales powered by open platforms. The train is about to depart, and the journey will be both transformative and exhilarating. The only question is — will you be on it?

Article by Kevin Pohmer, Chief Product Officer, Hexure

This article was first published on LIMRA MarketFacts (March 2024). 

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