Technology – Build v Buy?

The age-old debate between building custom solutions or buying off-the-shelf software continues to challenge decision-makers. Here, we explore the key factors to consider when making this choice and why VIPR is the markets top trusted brand since 2009 to deliver on clients expectations for delegated bordereaux data management, processing and analytic capabilities.

As we are nearing the end of H1 2023, the age-old question of ‘build vs buy technology’ across the insurance market seems more prevalent than ever with the amount of data being captured and the particularly growing demand in the reporting and analytics space.

This is creating significant rapid changes, and businesses are continually evaluating their technology strategies to keep up with the times.

“In order to align ourselves with our clients long term strategies, we have found that by adopting a hybrid approach whereby carriers and brokers can leverage certain elements of our ready made solutions, they are able to complement and accelerate their own developments. This is allowing us to work closer together than ever before as we continue to play a pivotal role in our clients long term success,” said Sebastian Prosser, Head of Account Management.

Cost is often the first thing that comes to mind. It's essential to weigh the initial investment and ongoing maintenance costs of custom-built solutions against the upfront and subscription fees for off-the-shelf products. Time is another significant factor to consider, as developing and implementing a custom solution takes longer than deploying ready-made software.

“Making the right decision between building or opting for an off-the-shelf product is crucial”, Sebastian said. “It all comes down to a few critical factors that need to be carefully considered.”

Quality should never be compromised. A thorough assessment of the overall quality and reliability of both custom-built and off-the-shelf solutions is necessary. VIPR has an outstanding reputation in the market for delivering exceptional products and services that cater to the needs of the worldwide delegated program insurance sector.

Flexibility is vital in today's fast-paced business environment. A solution that can adapt and scale to meet evolving business requirements and industry trends is invaluable. And of course, risk should always be taken into account, including potential risks associated with developing in-house solutions. VIPR takes a proactive approach to risk mitigation, ensuring the highest level of reliability and security for its clients.

When it comes to off-the-shelf solutions, there are advantages and disadvantages to consider. Faster deployment, lower upfront costs, and immediate access to updates and support are significant benefits. However, limited customisation, potential compatibility issues, and reliance on external vendors can be seen as a drawback. VIPR addresses these concerns by providing industry-specific software, seamless integrations, and dedicated customer support, making them the ideal choice.

On the other hand, tailored-built tech also has its pros and cons. Complete customisation, full control over development, and the ability to address unique business needs are substantial advantages. But higher initial costs, longer development times, and the challenge of maintaining and updating the solution can be downsides. VIPR bridges this gap by offering tailored-built tech designed to meet specific requirements, giving clients the best of both worlds.

VIPR’s Founder and CEO Paul Templar said, “We continuously strive to innovate and develop new technologies to enable our client’s the ability to accelerate their growth and improve the management of their portfolio. However, with many carriers and brokers now adopting a data first strategy, they are heavily investing in their own in-house technologies working closely with our VIPR experts to have a seamless automated data process in place.”

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