A rules engine is a robust piece of software that manages “if-then” statements known as business rules. These effective conditional statements help run companies by deciding whether a given input meets certain stipulations. Therefore, when a rules engine runs rules against a data set, it outputs a true or false result depending on whether the input data meets specified rules. Laws, best practices, and performance requirements can be represented by business rules. What follows is an overview of some of the benefits that companies in different industries can enjoy when using rules engines.
Automated Underwriting
Automated insurance underwriting uses a rules engine rather than human underwriters to calculate risks and prices. This means that tasks are completed more accurately and only in a fraction of the time it would take a human.
A rules engine that acts as an underwriting software solution analyzes an application and identifies parts that must be reviewed by a person.
Automated insurance underwriting only requires a couple of minutes to generate an entire risk assessment and have it approved by a human underwriter. In simple and easy cases, insurers can use the rules engine to give approvals without supervision or human intervention.
Attracting Customers with Dynamic Pricing
A dynamic pricing strategy is used by brands to continuously (very often in a matter of minutes) change prices based on various external variables. The goal of this strategy is to sell the same item at different prices in different situations.
Dynamic Pricing Across Industries
Dynamic pricing is used by leading companies in many competitive industries such as:
- Ride-Sharing
- Online Retail
- Tourism
- Event
Dynamic pricing can only effectively be executed with a certain level of automation that comes with using algorithms. Obviously authoring algorithms necessitates a lot of technical expertise. Rules engines enable non-technical staff to design complex pricing strategies without having to learn code or ask for assistance from the IT department. That’s one of the reasons why businesses are adopting business rules engines.
Rules-Based Fraud Management Solution
A business rule is made up of conditions that, when satisfied, can help identify fraudulent transactions and reduce risk.
A rules-based fraud prevention solution can identify a set of factors, such as uncommon transaction amounts from unusual locations to spot potentially fraudulent behavior.
These software solutions are also easy to work with because they’re composed of conditional statements, which speeds up both their development and implementation.
This is very important for organizations that analyze a large number of transactions in real-time.
Rules Engines As Product Configurators
A product configurator is a software solution that enables users to design their own product by picking and choosing various features. The tool works by using rules that help guide the user in the selection of options.
Rules add simplicity to the involved process of configuring complex products. Sales reps can keep track of all the product features and changes in pricing without having to remember that information.
Companies use product configurators to automate the process of configuring products and issuing quotes, which not only shortens the time to market but also cuts down on potential expensive mistakes.
Therefore, product configurators provide a seamless sales process and an improved customer experience.
