The Power of Pre-Integrated Insurance Software Suites and SaaS Solutions
It seems like ancient history, but not long ago technologists used to debate “build versus buy” as part of their due diligence. Maybe because some people just like to argue, the more recent quandary has been whether to go with “best of breed” versus pre-integrated insurance software suites or SaaS solutions.
Overwhelmingly, those packaged applications are winning out.
The reason behind this trend is pretty straightforward: Replacing a policy, billing, claims or rating system is very likely to reveal the limitations of older components and the fragility of the integrations between them. With that in mind, it’s often easier to upgrade with multiple pre-integrated components, which supports the speed-to-market imperative that I’ve been addressing.
This same logic is now being applied to SaaS delivery. Generally speaking, the appeal of SaaS is that you can get a truly end-to-end solution, including infrastructure, services, support, and constant upgrades assuming you shop wisely. Plus, your risk exposure is limited by working with fewer vendors, and implementations are much shorter because your technology portfolio comes pre-integrated.
SaaS Means Continuous Speed to Market
When it comes to digital communications, data-driven decision making, and predictive analytics, time spent is money lost, so the opportunity to benefit in months, not years, is a pretty compelling argument in favor of packaged solutions and SaaS delivery methods.
But wait! There’s more. By reducing the need and expense associated with maintenance, integrations, and upgrades, even small- and medium-size carriers can begin to benefit from the same cost structures and advanced technology–including analytics, computing, database, mobile, networking, security, storage, and web–as their larger competitors. Simply put, packaged solutions and SaaS can help you redirect and concentrate your resources on business challenges, like offering a high-quality customer experience rather than running a data center.
Contrast that with standing up a core system, which costs real money and delays your projected benefits. Plus, because the technology is always evolving, upgrades and maintenance can inflict unexpected consequences on downstream systems, which can be a serious disincentive to innovation.
If you’ve been postponing your digital transformation, concerned about costs, integrating emerging and rapidly changing technology, or the dearth of local talent, your wait has finally paid off.
Having trouble finding the right solution? Shoot me a message. I have a direct connection to one of the best core systems providers in the industry.
Matt Foster, Duck Creek Technologies’ Chief Operating Officer, firstname.lastname@example.org