Insurance leaders today face a defining question: should they build vs buy insurance technology? With digital disruption reshaping customer expectations, the decision is not just about IT—it’s about aligning technology with long-term business strategy.
Building for Competitive Differentiation
When insurers build systems in-house, they gain complete control.
Advantages of Building:
Fully customized solutions to fit business workflows
Proprietary ownership of technology
Opportunity to create unique market differentiation
Challenges:
High development and maintenance costs
Long project timelines
Risk of skill shortages in emerging technologies
Buying for Speed and Efficiency
Buying from InsurTech vendors ensures insurers can adopt proven solutions quickly.
Advantages of Buying:
Shorter time-to-market
Lower upfront costs
Vendor expertise in compliance and best practices
Cloud-based scalability and updates
Challenges:
Limited customization options
Ongoing vendor dependency
Licensing and integration costs over time
Aligning IT with Business Goals
The right choice depends on strategic priorities:
Speed: If market agility is critical, buying is ideal.
Differentiation: If technology is a competitive advantage, building makes sense.
Budget: Smaller carriers may favor buying to reduce capital risk.
Vision: Hybrid models can bridge the gap.
Conclusion
The build vs buy insurance technology decision is more than a technical debate—it’s a business strategy question. Carriers that align IT investments with long-term goals will position themselves as digital leaders in insurance.
