Rule Based System In Farm Bureau

Rule Based System In Farm Bureau

Introduction

The assignment uses a case study attached at the end of the chapter and it defines the role of business rules in financial bureaus. It has been observed that the mostly insurance industries are heavily relied on the “key Indicators” from their customers and these are input to some particular formulas that ca n determine the cost of the financial policies. Each individual who wants to buy insurance policy is expected to fill these indicators in his application. These indicators determined that whether the person is eligible for buying the insurance or not and to sell this insurance to the customer a hat price. This involves employees who done this thing manually for the customer and these employees judge the insurance buyer's at their past experiences (Gottesdiener & Consulting 1997). But there are some rules which can be accessed through the past experiences and are called as “rule schemes. These rule schemes are based on different rule such as the employee cannot sell the health insurance policy to a person who is a smoker and he is above 40 years of age and there is also a rule to charge heavy prices of the insurance policy for the person who smoked heavily on daily basis. Therefore, it can be said that Farm Bureau is a rule based organization where rules are set for the every one and these rules commonly comes from past experiences and common-sense of the employees.

Benefits of Using the Rule Based System at Farm Bureau

It has been stated in the case study that Farm Bureau processed thousands and hundreds of applications every day and sell numerous forms of the insurance every day and they have observed that most of the applicants are similar to each other and different people used different methods to fill out the forms and it is also observed that most of the applicants have the same daily activities which they mention in the insurance form. Rule based system at Farm Bureau can easily mechanize all these activities of the applicants because they have complete knowledge about the problem and the problem structure is also well known and completely structured (Comfield et al, 1987) . This system has enabled the Farm Bureau to make it system more efficient. Before the rule based system, the rate of applications which are not reviewed is 10% - 12% ...