WTW, the company previously known as Willis Towers Watson, has launched a new price inflation forecasting tool for insurers.
The tool uses Audatex’s repair data, which covers 98% of all UK vehicles, augmented by machine learning and comprehensive historical data analysis by WTW.
The technology was developed to predict inflationary effects on vehicle repair costs for multiple vehicle categories, “with unparalleled granularity”, as validated on historical data.
WTW said the new tool modernises the traditional practice of insurers and underwriters using a single inflationary figure across the board for predicting the future cost of vehicle repairs.
It takes into account the complexity of the UK’s vehicle population, at a time when the jurisdiction is also experiencing the highest inflation rate in the G7.
Tom Hart, head of account management at Solera Audatex, explained: “By making it possible to differentiate inflationary allowances between vehicle makes and models, this new price inflation tool allows insurers to boost their bottom line and offer more competitive pricing to customers.”
Stephen Cox, head of data partnerships, insurance consulting and technology at WTW, commented: “This tool offers insurers a significant competitive advantage. In such a volatile market, access to accurate cost predictions gives underwriters the ability to avoid underpriced business, while also making their service more attractive to those consumers who will no longer face prices that are unduly high owing to being based on an average of all vehicles.”