The Dilemma: Building or Buying Software Solutions
Insurance companies, agencies, and other stakeholders in risk management face a pivotal decision when it comes to enhancing their digital capabilities. They must decide whether to develop a custom software solution in-house or invest in a ready-made marketplace product. This choice significantly impacts their ability to stay competitive and meet evolving customer expectations in the digital age.
Risks and Rewards of Building a System
Opting to build a software solution from scratch presents both risks and rewards for insurance providers. While in-house development allows for tailored solutions and immediate changes, the process can be costly and time-consuming. The ongoing maintenance and updates required for proprietary systems may strain resources and delay implementation.
Benefits of Buying Marketplace Software Solutions
By purchasing marketplace solutions from established insurtech providers like Snapsheet, insurers gain access to quick deployment, ongoing support, and configurable software tailored to their specific needs. These out-of-the-box solutions often prove cost-effective and efficient, empowering insurers to enhance customer experiences and streamline claims management.
Partnerships for Claims Management: Another Option
Some insurers opt to collaborate with startups or acquire insurtech companies to leverage cutting-edge technology. Through partnerships, insurers can access exclusive solutions and drive innovation in claims management. Initiatives like insurer-backed incubators foster collaboration between tech companies and insurance industry leaders, leading to targeted, impactful solutions.