Will WTW's Radar Deal With Sompo Transform Insurance Pricing?

Willis Towers Watson Public Limited Company WTW, through its Insurance Consulting and Technology (ICT) division, has forged a global partnership with Sompo Holdings, Inc., one of Japan’s largest insurance groups. Under this collaboration, WTW’s ICT arm will roll out its proprietary Radar platform across Sompo Group, reinforcing its strategy of combining advanced technology with advisory expertise to deliver smarter pricing and underwriting solutions for the insurance sector.

Radar serves as the centerpiece of this collaboration, offering insurers a powerful pricing and underwriting platform. It applies predictive analytics, machine learning, and integrated connectivity to drive quicker and more accurate decisions. By eliminating the need for coding, the solution enables insurers to more easily adapt their pricing models and remain competitive in rapidly changing markets.

The strength of Radar is already visible in practice, with Sompo Direct, a subsidiary of the Sompo Group, deploying the platform in its auto insurance business. By using WTW’s technology, the company can analyse customer-level risk more effectively and adjust premiums with greater speed and precision. This deployment represents the first global implementation of Radar in Japan. It highlights how Radar supports the entire insurance value chain, from risk assessment and rating to market development, demonstrating the impact of WTW’s ICT solutions in driving smarter and more agile operations.

The Sompo–Radar partnership may help WTW financially by creating recurring, high-margin software revenues through licensing and maintenance. The transaction with Sompo may open doors for WTW to expand in Japan and beyond, thereby scaling revenues. Overall, the partnership may boost WTW’s margins, add predictable cash flow and strengthen its position in tech-enabled insurance solutions.

WTW's Price Performance

In the year-to-date period, WTW’s shares have gained 5.3% against the industry’s decline of 14.8%.

Zacks Rank & Key Picks

WTW currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the insurance space are Assurant, Inc. AIZ, Hannover Rück SE HVRRY and Horace Mann Educators Corporation HMN. While Assurant sports a Zacks Rank #1 (Strong Buy),Hannover and Horace Mann each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Assurant’s current-year earnings is pegged at $17.60 per share, implying 5.8% year-over-year growth. AIZ’s earnings surpassed estimates in each of the last four quarters, the average surprise being 18.88%. The consensus estimate for AIZ’s current-year revenues is pegged at $12.6 billion, implying 5.7% year-over-year growth.

The Zacks Consensus Estimate for Hannover’s current-year earnings is pegged at $3.95 per share, implying 13.5% year-over-year growth. The Zacks Consensus Estimate for 2025 earnings has moved up 3.1% in the past 60 days, while the same for 2026 has increased 1.7% in the same time frame.

The Zacks Consensus Estimate forHMN’s current-year earnings is pegged at $4.21 per share, implying 32.4% year-over-year growth. Horace Mann’s earnings surpassed estimates in three of the last four quarters and met in one, the average surprise being 39.75%. The consensus estimate for Horace Mann’s current-year revenues is pegged at $1.7 billion, suggesting 5.8% year-over-year growth.

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This article originally published on Zacks Investment Research (zacks.com).

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