WTW unveils new AI technology for accurate P&C reserving

WTW has launched ResQ Machine-led Reserving, a technology designed for insurers and reinsurers to enhance accuracy and efficiency in P&C reserving.

Tina Gwilliam, Global Proposition Leader for Reserving at WTW, emphasised the challenges faced by the insurance sector, stating: "The insurance industry has long faced challenges with expensive, infrequent, low-granularity analyses for financial reporting. ResQ Machine-led Reserving delivers faster, more precise results that allow reserving teams to focus where it matters and provide insights to support broader business needs."

The new technology leverages proprietary algorithms to optimise core reserving methods found in ResQ, WTW's loss reserving solution. It enables fully automated and independent loss estimates at the push of a button.

Extensive back-testing of projections made by ResQ Machine-led Reserving has demonstrated significant outperformance in comparison to traditional human-selected estimates. This includes improvements in both the accuracy and stability of the estimated ultimates.

Projections from the system are rooted in traditional techniques, ensuring results are comprehensible and can be adjusted if necessary. This adaptability allows users to manage increased complexity and detail without sacrificing control or clarity.

Tina Gwilliam further commented, "ResQ Machine-led Reserving is transforming the way in which forward-thinking insurers operate, with accurate and transparent projections of ultimate losses. It allows reserving teams to deliver increased value and brings algorithmic reserving to pricing and portfolio management functions."

WTW, formerly known as Willis Towers Watson, is a global advisory, broking, and solutions company that provides a comprehensive range of services to clients across various industries. With a focus on innovation and data-driven insights, WTW helps organisations manage risk, optimise workforce performance, and enhance overall operational efficiency. The company specialises in insurance, employee benefits, and technology, establishing itself as a trusted partner for clients navigating the complexities of today's business environment.

The launch of ResQ Machine-led Reserving highlights WTW's commitment to innovation in the insurance sector. This new technology aims to improve the accuracy and efficiency of reserving processes, addressing the increasing complexity and regulatory demands faced by insurers and reinsurers. By providing enhanced tools for informed decision-making, WTW supports the immediate needs of reserving teams while positioning itself as a significant player in the evolution of insurance practices. This development not only contributes to the operational efficiency of its clients but also reinforces WTW's role in advancing industry standards and practices in the insurance sector.