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.