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Press Release

Radar upgrade mitigates ‘black-box’ risks with increased transparency taking machine learning to new levels

Insurance Consulting and Technology|Personal Lines
Insurer Solutions|

May 17, 2022

Radar 4.15 delivers ground-breaking capability combining interpretability of complex models without the typical trade-off in standard models of losing machine learning’s predictive power.

GLOBAL, May 17, 2022 — WTW (Willis Towers Watson, NASDAQ: WTW) has announced the launch of the newest version of its leading-edge Radar pricing software. Radar 4.15 overcomes a major barrier to wider adoption of machine learning by introducing a ‘market-first’ capability that makes it significantly easier for insurers to benefit from the full predictive power of machine learning without losing the ability to interpret accurately the outcomes of increasingly complex models.

By introducing a proprietary algorithm that resolves the previous inherent trade-off between accuracy and interpretability of models, the Radar upgrade delivers an exceptional level of predictiveness and transparency. This will transform insurers’ ability to unlock the full potential of machine learning in order to optimise their underwriting and claims processing, whilst adapting to a regulatory environment increasingly focused on fairness.

The innovation underpinning Radar 4.15 is ground-breaking…giving insurers access to state-of-the-art, speed-to-accuracy performance that goes hand-in-hand with unrivalled levels of transparency.”

Serhat Guven | Managing Director at WTW

Serhat Guven, Managing Director at WTW, said: “The innovation underpinning Radar 4.15 is ground-breaking, for the first time giving insurers access to state-of-the-art, speed-to-accuracy performance that goes hand-in-hand with unrivalled levels of transparency. Technological advances will inevitably continue to reshape the insurance landscape, yet it will only be possible to harness the full potential of these technologies if customers and regulators trust they are being used by insurers responsibly.”

AI-based and machine learning tools offer higher predictive performance and accelerated speed to market, yet by their nature are more complex and less transparent, preventing the user from fully understanding the model they are creating. Their ‘black-box’ nature poses significant risks if deployed without due care, including amplifying bias risks that lead to discriminatory decisions, and regulatory tolerance is running out for pricing perceived to be unfair.

Serhat added: “Radar 4.15’s powerful new algorithm addresses the black-box limitations of machine learning by offering insurers a ‘best-of-both-worlds’ solution that combines the pure predictive power of the machine learning approach of Gradient Boosting with the exceptional intepretability and transparency of Generalised Linear Models.”

Other updated features of Radar include enhancements to Radar Base and Radar Workbench.

About Radar

WTW’s Radar includes Emblem, which fits predictive models rapidly to very large and complex datasets to reveal the underlying patters in your data; the Radar Base modelling and reporting environment; Radar Dashboard for sharing pricing management information across the organisation and pricing strategy; Radar Live for rating (integrated with virtually any policy system); Radar Workbench, an analytical platform that helps underwriting professionals implement confident decisions at pace; and Classifier for providing detailed categorisation and assessment of risk by geography.

About Insurance Consulting and Technology

WTW’s Insurance Consulting and Technology business has over 1,200 colleagues operating in 35 markets worldwide. It is a leading provider of advice, solutions and software – primarily to the insurance industry. Its consulting services help clients manage risk and capital, improve business performance, and create competitive advantage – by focusing on financial and regulatory reporting, enterprise risk and capital management, M&A and corporate restructuring, products, pricing, business management and strategy.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organisations sharpen their strategy, enhance organisational resilience, motivate their workforce and maximise performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.

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