Insurance and reinsurance brokerage Willis Towers Watson (WTW) has released an updated version of its Radar pricing software, designed to provide insights on pricing fairness and address the growing need for transparency.
Radar 4.5 is the latest version of the broker’s pricing software, and WTW states that its next generation insurance software addresses demand for pricing fairness and transparency in light of growing regulatory pressure.
According to WTW, the latest version offers a range of metrics that provide firms with insights on pricing fairness to support the selection of rates which meet the requirements of both insurers and their customers.
James Tanser, WTW’s Director of Insurance Consulting and Technology, commented: “Recent proposals by the UK government would give the Competition and Markets Authority new powers to impose fines on companies that overcharge or mislead customers, without going through the courts.
“The need for insurers now to work out the best way to define, monitor and demonstrate fairness is a significant challenge for companies already under constant pressure to innovate in a fiercely competitive industry.”
Version 4.5 of the broker’s pricing software features an evaluation library which is designed to help carriers assess their pricing options against a number of measures of fairness, such as through unawareness, the quota system and condition group parity, and determine whether or not their prices are in line with, or fail to meet those particular metrics within their portfolio.
“This latest release of Radar gives insurers the tools they need to measure fairness in their pricing models and to deliver on their commitment to giving their customers clear and fair information so they can make the right decision,” added Tanser.
WTW notes that other updated components of Radar include enhancements to the Elastic Net machine learning method.