White Paper : Make or Buy? Choosing the Right Tech Path for Insurance Transformation
Introduction: The insurance industry stands at a critical juncture.
Insurers, brokers and MGAs are facing unprecedented pressures from evolving customer expectations, increasingly complex regulatory environments, and the imperative to achieve greater operational efficiencies.
In this dynamic landscape, technology has moved from a supporting role to become a fundamental driver of competitiveness and growth. In a recent Deloitte survey of commercial lines insurance carriers, over 90% of the respondents indicated that their existing technology environment will not be sufficient to support product development capability requirements in the coming 3 to 5 years. Modern insurance operations necessitate sophisticated capabilities for data management, workflow automation, and the rapid adaptation of services to meet market demands.
The integration of advanced technologies is no longer a futuristic aspiration but a present-day necessity. Enhancing underwriting accuracy, personalizing customer experiences, and optimizing claims processing using cloud computing and artificial intelligence is necessary to ultimately improve overall profitability for insurers, brokers and MGAs.
Today, 63% of insurers are concerned about the adequacy of their technology.
Making Arguments: Why In-House Development Appeals to Insurers
1. Full control and flexibility
2. Avoiding vendor lock-in, licensing constraints, and unexpected pricing changes
3. Better integration with existing systems
4. Data ownership and security
5. Customisation and innovation
From "Make" to "Buy": a shift in paradigm
Buying Arguments: Scaling Smart, example with Korint's SaaS Core Insurance Platform
1. Cost efficiency
2. Faster time-to-market and implementation
3. Access to external innovation
4. Access to expertise
5. Scalability and reliability