What Is an Example of a Business Rule?
Examples of business rules look like “If there have been credit defaults in the last five years, then he cannot take out an insurance policy with us” or “If the customer has processed more than three insurance claims in the last three years, then he will be offered conditions XYZ.”
But a rule can also be: “If the online customer of a shopping portal has already submitted more than ten reviews, we offer him a 5-euro voucher.”
If a potential customer wants to open an account with an online bank, the business rule engine compiles data from public sources to assess the customer’s creditworthiness. The software collects data such as the customer’s consumption behavior, a credit agency query (such as with Schufa), the customer’s historical data from the bank, age, occupation, marital status, existing loans, assets (if ascertainable), and any other relevant information. The application calculates score value from this data, and depending on the score, the customer gets an account or is denied.
In the insurance sector, rule-based engines come in handy to calculate whether reported insurance claims are genuine. For example, a policyholder might report a theft (such as a bicycle theft), so the rule engine conducts an AI-supported analysis to ascertain that the robbery took place. There is attempted insurance fraud (because the policyholder gave the bicycle away and reported it stolen). The analysis uses machine learning capabilities to analyze the policyholder’s letter, past insurance history and runs an evaluation of thefts in the same area.
A final example of rule-based engine capabilities is when someone opens an account with an online store and then immediately orders a device for 2,300 euros by invoice. Here, a business rule can specify that new customers can only order by invoice up to a certain amount (say 200 euros) and can only make the purchase via advance bank transfer, PayPal, or credit card.