Sompo Group has entered into an alliance with WTW to incorporate the latter’s Radar technology into its non-life insurance services. 

This represents the first global use of Radar in Japan, with Sompo Direct Insurance already having deployed the technology for its automobile insurance pricing, WTW noted.  

Radar is a pricing and underwriting tool designed to equip insurers with predictive modelling and machine learning (ML) capabilities, while facilitating system integration without the need for programming expertise.  

Sompo Direct, which focuses on online automobile insurance, has implemented Radar to enhance its ability to assess customer risk through data analytics, enabling updates to insurance premiums.  

Radar supports a range of functions within the insurer’s system, from risk analysis and rating decision-making to market development strategies. 

Sompo Direct Insurance executive officer of system Tadashi Yamanaka said: “The introduction of Radar has enabled us to rapidly implement premium revisions that reflect changes in market, accident trends and customer risk profiles more accurately.  

“We will continue to improve our pricing so that we can provide our customers with reasonable and affordable automobile insurance by utilising WTW’s advanced technology.” 

WTW divisional leader for north-east Asia, Insurance Consulting & Technology Chiaki Tanaka stated: “Radar has enabled Sompo Direct to unlock the full value of its data and bypass traditional system development bottlenecks. Premiums determined by product development teams are now directly reflected in production environments of the system, allowing for flexibility and agile pricing so that Sompo Direct can launch their insurance products quickly. 

“The Sompo Group has also begun to introduce Radar into its operations beyond Japan, starting with Turkey, with further expansion being considered and planned across South East Asia.” 

Last month, a wholly owned subsidiary of Sompo International Holdings agreed to purchase Aspen Insurance for around $3.5bn. 

The deal entails the purchase of all issued Class A ordinary shares of Aspen at $37.50 each, to be paid in cash.