In the early 2000s, the decision between building or buying tech solutions was straightforward—build, as there were few ready-made options available for carriers. Fast forward to today, and the vendor marketplace has transformed immensely. Carriers now have the luxury of choosing from a plethora of vendors, each offering tailored solutions that promise to align with organizational needs.

The workers’ compensation sector is particularly competitive, prompting larger carriers to deliberate whether to develop in-house pay-as-you-go billing systems or to partner with external vendors. The decision is not trivial and involves numerous variables such as IT capabilities, budget constraints, and desired timelines. Moreover, unforeseen challenges often surface during the development process.

Here are four critical questions carriers should consider to navigate potential pitfalls effectively:

1. How Will You Acquire Payroll Data?

Securing payroll data is pivotal. Many carriers face unexpected hurdles in handling various data formats (.txt, .csv, .xlsx, .xml) and establishing secure file transfer protocols. With thousands of payroll providers nationwide, identifying and connecting with an adequate number of providers to achieve a critical mass of payroll connections can be daunting.

The InsurePay network, boasting over 2,000 connections, is a testament to the intense effort required to establish such an extensive network. This allows carriers to quickly and efficiently access a vast array of payroll data, significantly reducing the workload and potential complications of building these connections from scratch.

2. How Much Will It Cost to Control the Customer Experience?

Some carriers opt to build their solutions to maintain control over the customer experience. While this might seem advantageous initially, vendors typically catch up due to their broader market exposure and continuous innovation. Carriers need to consider if they are prepared to sustain the additional costs and complexities of developing and maintaining bespoke software solutions.

The InsurePay platform is designed with a focus on user experience, allowing carriers to customize features without the need to manage the underlying technology. This approach provides carriers with the flexibility to tailor the customer experience while leveraging our ongoing innovations and support.

3. What’s Your Maintenance Budget?

Maintenance is an ongoing challenge post-development. Without a substantial maintenance budget, carriers risk their custom solutions morphing into outdated systems burdened with technical debt. Unlike carriers, vendors are compelled to innovate continuously, as their survival depends on staying relevant and competitive.

With InsurePay, carriers can offload the maintenance burden to us. We handle all aspects of software upkeep, including regular updates and improvements, allowing carriers to focus their financial and human resources on core business operations.

4. What Are Your Core Competencies?

Carriers must evaluate the impact of diverting resources from their primary competencies to develop new technologies. In a digital age where consumer choices abound, focusing on core competencies is crucial for customer acquisition and retention. Purchasing solutions allows carriers to leverage the entrepreneurial drive of vendors, who are inherently motivated to succeed and support their clients’ needs diligently.

By choosing InsurePay, carriers can concentrate on their core competencies, secure in the knowledge that the technological aspects of pay-as-you-go solutions are being expertly managed by a dedicated team of specialists. This partnership not only enhances operational efficiency but also bolsters carriers’ abilities to innovate and compete in their primary markets.

Conclusion: The Path Forward in the Pay-As-You-Go Space

Deciding whether to build or buy is more complex than ever. With over 40 insurer partners and handling over $5 billion in annual premium payments, we at InsurePay are keen to share our insights and support your journey, whether you choose to build a solution or explore vendor partnerships.

Schedule a Complimentary Consultation: Interested in discussing your pay-as-you-go options? Contact us for a 30-minute, no-obligation consultation.

Explore InsurePay: Start your journey with us and leverage our extensive experience and robust network in the pay-as-you-go marketplace.