Digital transformation in the insurance sector is happening, urging insurance companies to act fast.

While many insurance companies have digitalized their customer interfaces for sales and FNOL, a substantial journey remains in optimizing "back-end" processes like personal injury claims management, which still heavily rely on manual tasks.

The critical decision lies between crafting an IT solution in-house or procuring an external one. Below, we delve into the benefits and drawbacks of each route.

Buying an IT solution: The ready-made path

Contrarily, the ready-made route offers quicker deployment, with many solutions even offering no-commitment trials for a fast, low-risk trail.

Insurtech solutions, designed for one but utilized by many, bring a wealth of experience and pre-tested functionalities that can speed up digital adoption.


  • Quick deployment: Transition to digital is swift with pre-built functionalities.
  • Proven solutions: Benefit from a solution tested and refined across many other insurers.
  • Focus on core competencies: Maintain focus on managing claims and serving customers while leveraging external technical expertise. You also gain access to external support for troubleshooting or onboarding new colleagues.
  • Always up to date: As delivering competitive solutions is the insurtech company's core business, rest assured it will be maintained and updated with the latest technology.


  • Less customization: It may only solve specific challenges, where every unique step in your process may not be covered.
  • Dependency on vendors: Relying on external vendors for updates, maintenance, and troubleshooting.
  • Cost over time: Subscription fees or licensing costs could accumulate over time.

The truth is many insurance companies are entangled with legacy systems that are hard to untangle. Purchasing an insurtech solution can serve as an extension to these core systems, delivering modern, easy-to-integrate features catering to specific needs.

Building an IT solution: The tailored path

Embarking on the journey of crafting an in-house IT solution gives you a tailored system to meet business-specific needs and directly integrates with your core system. However, this path carries its own set of challenges.


  • Tailored solutions: Custom fit to your operational nuances, claims process, and customer needs.
  • In-house control: Full reign over development, maintenance, and upgrades.
  • Direct integration: Building as part of your core system enables direct integrations.


  • High initial costs: Significant financial, time, and resource investments are required.
  • Technical expertise gap: Many insurance companies lack cutting-edge technical expertise and an innovative culture for these experts to thrive despite having large IT departments.
  • Long deployment time: The stretch from conception to deployment can be lengthy and filled with risks.
  • In-house responsibility: Being in control over development, maintenance, and upgrades can be a tough commitment as technical advancements never end, making it challenging to set a strict finish line for an IT project.

Many insurance companies operate on old core systems, which, although reliable, are tough to maintain and develop further. Building new solutions on these aging foundations often leads to a complex, cumbersome IT landscape.

Final thoughts

The crossroads of building or buying transcends a technical decision to a strategic one. The urgency to advance on the digital transformation journey is real, and the route chosen now will resonate through an insurance company's operations for years to come.

The blend of ready-made solutions with the potential for long-term collaborative partnerships presents a compelling case for getting the best of both worlds. Often, in these partnerships, the insurer's domain knowledge and the insurtech companies' technical expertise bloom, leading to fantastic innovations.

Julia Holm, CEO at Sedgwick, shares her thoughts on the synergy between Mavera and Sedgwick.

"IDP is a technology that I believe can save us an enormous amount of time... Mavera's offerings harmonize well with our vision, making us excellent partners."

Also, building a system internally without external input can be problematic, especially if the system is built on existing and potentially inefficient processes. It's vital to create a well-functioning system adjustable to future developments. The system should work efficiently both now and in 20 years. Obtaining a fresh outside perspective on the problems and potential solutions can be invaluable in avoiding a short-sighted problem-fixing approach.

Please contact us for more insights or to explore how we can support your digital initiatives through tailored IT solutions or strategic partnerships.