SaaS models offer greater versatility by leveraging the ability to not only store core systems in the cloud, but also by offering service upgrades, system support, performance optimization and more, strengthening the business agility and operational efficiency of enterprises.

However, the question is: Should a company develop its own software according to its specific characteristics or would it be better to go for an off-the-shelf solution developed by an insurtech?

Duck Creek Technologies wanted to respond on this question in its new white paper Buy Vs Build - Improving speed to market in the insurance industry.

Buy Vs build

The debate over whether to buy an out-of-the-box  SaaS solution or build it in-house centers on vendor capabilities versus in-house talent and capabilities, along with questions about intellectual property, customization of the solution and of course, cost.

Buy evergreen SaaS core systems

Over the past decade, the architecture of SaaS models has matured significantly, giving customers better and more options. This evolution has gone hand in hand with improved data management, simplifying models and creating more flexible structures.

All of these factors give companies greater confidence in transitioning to cloud-based enterprise software through subscription services. The evolution and development of SaaS platforms also gives buyers the option to test specific components to determine use cases prior to implementation, as well as allowing traditional features to be extended to provide greater flexibility and value.

In Duck Creek's case, it uses "low code" configuration tools, integrations within the insurtech ecosystem, open APIs and a commitment to keeping the software code base separate from customers' intellectual property, creating a trusted environment for insurers to adopt out-of-the-box solutions that are easy to evolve in the future.

Solutions like Duck Creek OnDemand offer the best of both worlds - software that comes pre-built and with ongoing updates and support - while offering customization as an in-house solution would. This gives insurers a lot of control over the development process.

So, is it better to build the software in-house or buy off-the-shelf solutions from a vendor? The solution to this question is unique to each company. However, it is important to consider that the "buy" option has become significantly easier to achieve with confidence in recent years. More companies are open to directing IT spending toward OnDemand propositions. The advantage of the SaaS model is its flexibility, which allows insurers to adapt to rapid change.

With the SaaS model, companies can adapt quickly in a fast-paced world with the intelligence to navigate the path to success. By adopting SaaS solutions, internal technology resources can focus on product and service innovation by leveraging the insurtech ecosystem in the insurance industry.