The shared cost model when developing software has many advantages over development costs being allocated on a case-by-case, customer-by-customer basis, says Ronny Reppe, CEO of Norway-based insurance platform provider Noria.
In a recent interview with Insurance Marine News Reppe said that “the shared cost model is one of the trends that I believe is really important in insurance software now. You have the same source code for all customers and all the customers share the cost of delivering new versions and new technology. That means we can continuously develop the solution and continue to deliver new solutions to all our customers.”
Reppe said that most of Noria’s competitors ended up with a customized solution that was delivered as a standard package, where each broker or insurer has to pay all the costs of developing their own solution.”
He said that, if executed properly, the shared-cost model could deliver in a much more cost-efficient way than any other solution.
Reppe said that we do not know how the insurance industry is going to change, so what the insurance industry needs to do is to prepare for change. “They need to be prepared to change quickly, and very few are capable of changing quickly. They should be ready to launch new technology, new products, within months, and not years. And that is down to refining the core processes”.
Full interview at: