To build or to buy: A complex question

The build versus buy debate is an ongoing topic for many companies, especially in the financial services industry, where there is a lot of pride in doing things internally.

However, due to black swan events like floods, power shortages, and riots, which have resulted in smaller margins and difficulty in discussions with reinsurers, insurers are now considering a more agile approach that can increase efficiency and agility.

One of the biggest drivers to consider a customer's business case for buy rather than build is futureproofing one's business. Insurers need to consider using technology, data, and available talent to increase agility and efficiency across the full life cycle.

The decision to build versus buy depends on each company's frame of reference and their phase in the life cycle. However, business continuity and disaster recovery have raised the ante, and companies need to future-proof themselves regarding scale, innovation, and expansion inside and outside of their borders.

In evaluating build versus buy, the three main categories to consider are:

• Functional depth
• Data in and out
• Support

Listen to our discussion with Leo Holesgrove, Guidewire representative for Southern Africa, where he takes a closer look at the Build versus Buy debate.