The global insurance industry is in the midst of unprecedented change. From AI-driven claims to personalized policies, the push for modernization is stronger than ever. But one question keeps surfacing: should carriers build vs buy insurance technology?
This choice is central to crafting a roadmap for digital transformation.
Building as a Long-Term Investment
Building insurance technology internally allows companies to own and control their digital destiny.
Pros:
Custom systems tailored to unique operations
Ownership of intellectual property
Opportunity for lasting competitive advantage
Cons:
Significant upfront costs
Delayed implementation timelines
Continuous resource demands for updates
Buying as a Quick Win
Buying pre-built insurance platforms gives carriers immediate access to proven solutions.
Pros:
Speedy deployment
Lower upfront costs
Vendor-provided upgrades and compliance support
Scalable cloud-native architecture
Cons:
Limited flexibility for customization
Long-term vendor reliance
Recurring licensing expenses
Building Your Roadmap
When deciding build vs buy insurance technology, insurers should map out their transformation journey:
Step 1: Define business priorities (speed, innovation, cost savings).
Step 2: Evaluate in-house technical capabilities.
Step 3: Compare total cost of ownership over time.
Step 4: Consider a hybrid model for balance.
Final Thoughts
The build vs buy insurance technology debate is not about choosing the “right” answer but about choosing the answer that fits your roadmap. By aligning decisions with long-term transformation goals, insurers can position themselves as digital leaders ready to serve the customers of tomorrow.
