WTW use machine learning to drive better pricing practices

Willis Towers Watson’s pricing software has ramping up its use of machine learning for greater pricing sophistication.

In its latest iteration, Radar 3.0 now implements a wider range of machine learning models, which means a greater number of analytical techniques can be employed in order to achieve more effective pricing.

According to WTW, processing speed is also as much as five times faster.

Radar 3.0 is the culmination of 18 months of development work. According to WTW global P&C pricing and product management leader Duncan Anderson, while many insurers are using machine learning already, it is set to become an essential aspect of the process.

He said: “Machine learning is already in use by many insurers as a complement to traditional pricing techniques. Several insurers are in the process of introducing machine learning models into elements of their live rating algorithms.”

He continued: ”So they are being used already, and given that Radar Live is licensed by a majority of the UK private motor market we would anticipate fairly rapid adoption of these approaches.”