The launch of WTW’s ResQ Machine-led Reserving introduces a significant technological advancement designed to increase the precision and efficiency of property and casualty (P&C) loss reserving for insurers and reinsurers. This innovative tool leverages proprietary algorithms to enhance existing processes, allowing for automated and independent loss estimates with just a single click. Comprehensive back-testing has shown that this machine-led approach not only exceeds the accuracy of traditional human-only methods but also offers greater stability in projecting ultimate losses.
Tina Gwilliam, the Global Proposition Leader for Reserving at WTW, emphasizes that the insurance industry has long grappled with the expensive and infrequent analyses of low granularity essential for financial reporting. ResQ Machine-led Reserving resolves these challenges by delivering faster and more accurate results, enabling reserving teams to focus on areas that require human judgment while also supporting broader business needs.
Enhancing Business Flexibility and Value
Employing traditional reserving techniques, ResQ Machine-led Reserving ensures that its results are fully interpretable and can be tailored as necessary, providing adaptability to evolving business needs. This level of flexibility allows users to manage increased complexity and granularity without losing control or transparency. Gwilliam also suggests that this tool represents a revolutionary step for progressive insurers by providing accurate and transparent projections of ultimate losses. By integrating algorithmic reserving into pricing and portfolio management, reserving teams can add greater value and directly contribute to broader strategic objectives.
In conclusion, WTW’s introduction of ResQ Machine-led Reserving marks a considerable advancement in P&C loss reserving. The technology underscores enhanced accuracy, operational flexibility, and efficiency, enabling insurers to deliver more precise financial insights and streamline their reserving processes to meet changing demands.
