When Should You Build Your Own Insurance Technology? Buy vs Build - Ask A Nerd Podcast

Many a new MGA go down the path of building their own internal systems such as CRMs, Policy Management Systems, Claims systems.

Is this a good idea? That's What Michelle and Nick discuss in the latest episode of Ask A Nerd.

WATCH & LISTEN HERE:

IN summary, for the vast majority of startups you should NOT build. Why?

1. Opportunity costs - you are building something that is not part of a revenue generating product. Your focus should be on the product and executing your value proposition. Every day you are not in market, is another day where you are burning up previous capital

2. Even if the system is vital to the product in some way, you should still buy. Why? Because you dont know what to build!!! If you decide you strategically need to have a Policy Management System that is fully yours, you dont know how to even build that. You are still better off buying a solution and learning what you want for you system and using that as an MVP for your design.