Tech Update: WTW Unveils Machine-Led Solution to Enhance Insurance Reserving

Insurance broker WTW announced the launch of ResQ Machine-led Reserving, which WTW describes as a game-changing technology for insurers and reinsurers to enhance accuracy and efficiency in property/casualty reserving.

ResQ Machine-led Reserving uses proprietary algorithms that optimize the core reserving methods in ResQ, WTW’s loss reserving solution, to create fully automated and independent loss estimates at the touch of a button.

“The insurance industry has long faced challenges with expensive, infrequent, low-granularity analyses for financial reporting,” commented Tina Gwilliam, global proposition leader for Reserving, WTW. “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.”

Back-testing of ResQ Machine-led Reserving projections against actual historical human-selected best estimates has shown significant outperformance compared to human practitioners alone with both increased accuracy and stability in estimated ultimates, WTW explained.

The projections are based on traditional techniques, so the results can be fully understood and easily adjusted if required. The ability to adapt quickly to changing business needs gives users of ResQ Machine-led Reserving the confidence to scale to higher complexity, granularity and frequency without losing control or interpretability.

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

Source: WTW