Platforum says firms looking at launching a corporate platform should use off-the-shelf technology to avoid high costs.
In its corporate platforms white paper, Platforum says the cost of running platforms is significant and new entrants should buy in their technology.
Managing director Holly Mackay says: “There are very few providers who should be assessing an internal build as the availability of outsourced partners today is both wide and varied.
“We have seen many players in the past make strategic decisions to build platforms based on appealing potential growth charts, only to fall foul of crippling IT build costs.”
Threesixty partner Phil Young says: “Given the need for corporate wraps to take and aggregate policy data from competing insurers, it may be easier to use an outsourced third party to undertake this back-end work.”
Finance and Technology Res-earch Centre director Ian McKenna says: “If several major org-anisations all buy from the same supplier, there is a risk that they will lose their own identity.”