The pros and cons of building your own claims management system

Since I joined the product team at DOCOsoft, I’ve been talking to claims professionals across the London market to understand more about the technology they’re working with and the challenges they face. One thing I hear repeatedly is complaints about how hard it is to configure or customise a particular claims management system (CMS). One challenge is aligning specialised internal claims processes with off-the-shelf systems.

I was recently speaking at an industry conference where this topic came up again. One of my co-panellists expressed frustration with their firm’s current CMS, suggesting that building an in-house system might be the only way to align the system’s functionality with their unique needs. The debate around build vs. buy has been around for ages, but the technology landscape has changed a lot over the years, bringing fresh perspectives to the conversation.

The self-build option

Customisation is often a key driver in the decision to self-build. London Market (re)insurance carriers are highly specialised businesses. Building a system in-house can allow you to create a tailored solution that integrates seamlessly with your existing workflows and evolves with your business. For specialist carriers handling complex claims, the appeal is obvious.

However, building your own bespoke system is a major undertaking. It requires a significant investment of time, resources, and technical expertise. This can distract from core business activities, particularly in a fast-paced, highly regulated environment.

The London market adds extra complexity in terms of messaging. Sending, receiving, and interpreting messages through various market gateways can be complicated. Outside London, peer-to-peer messaging becomes more important, adding further complexity. Standards change over time—Blueprint Two is a case in point—highlighting the need to maintain systems and keep them up to date. Many of DOCOsoft’s clients choose to work with us because they rely on us to handle the complexities of ever-evolving market messaging systems.

The complexity of today’s claims systems leads to another concern regarding building your own: time to value. Developing a robust system from the ground up is lengthy. From gathering requirements to building basic functionality, QA, and beyond, it can take months, if not years, before a business realises the value of a self-built system.

The case for outside help

Working with an external provider allows for faster implementation, based on a solution that’s already been tested and optimised for the specific challenges London market carriers face. This means your business can quickly start to see the improvements the system delivers, rather than waiting for missing functionality.

Considering these issues further, complexity and long lead times imply another problem: cost. Building a CMS carries high upfront costs, and there will be ongoing expenses for maintenance and updates that may not be budgeted in an initial proposal. Those updates often need a business case to justify time or cross-charges. A subscription-based solution, like those offered by specialist technology providers, spreads costs more predictably and allows you to benefit from ongoing improvements.

At DOCOsoft, we’ve always taken the need for flexibility to heart. Our current system offers significantly more flexibility than some of the systems frustrated claims teams have shared with me. Our forthcoming SaaS platform, DOCOsoft Vew, goes even further, empowering claims teams to configure and customise fields and workflows from within their systems. This provides users the customisation they need without compromising scalability or speed.

Making the right choice

Ultimately, whether you build or buy depends on the unique needs of your business. If you’re willing to devote the time, attention, and resources it demands, it can be a great option. However, before assuming self-build is the only way to get what you need, consider whether partnering with the right specialist provider could offer you the best of both worlds.