Insurance Planning
These engines, quite often based on the worldwide web, take certain details from a user and search through the database to find the best deal for that user for, say, car or life insurance. This subsection discusses the example of life insurance but the same approach is used in insurance generally.
No parent would knowingly leave their children with debts to pay should the parent die. To safeguard against this, many parents take out life insurance. They pay the insurance company a certain amount of money every month and should they die the insurance company pays the dependants an agreed amount of money. The longer a person lives the more profitable it is for the insurance company as they can invest the money the individual is paying them. Some policies are only for a fixed number of years and so if the individual dies after this time the insurance company does not have to pay out. The insurance company must work out how many policies it may have to pay out on compared with how many policies it will not. This will help it to work out the likely profitability of approving a particular life insurance policy.
Insurance advisers are able to decide whether an individual should be offered a policy and, if so, how much they should pay each month. By interviewing these experts a set of rules can be set up, providing guidance n whether individual applications should be accepted. In addition, if all the existing policies of an insurance company are examined, a much broader range of facts and rules can emerge. When somebody applies for a life insurance policy, he expert system asks the individual questions about heir age, whether they smoke, about their health record and so on. Based on the responses, it will make recommendations as to whether the policy should be issued, for what length and at what cost.
No parent would knowingly leave their children with debts to pay should the parent die. To safeguard against this, many parents take out life insurance. They pay the insurance company a certain amount of money every month and should they die the insurance company pays the dependants an agreed amount of money. The longer a person lives the more profitable it is for the insurance company as they can invest the money the individual is paying them. Some policies are only for a fixed number of years and so if the individual dies after this time the insurance company does not have to pay out. The insurance company must work out how many policies it may have to pay out on compared with how many policies it will not. This will help it to work out the likely profitability of approving a particular life insurance policy.
Insurance advisers are able to decide whether an individual should be offered a policy and, if so, how much they should pay each month. By interviewing these experts a set of rules can be set up, providing guidance n whether individual applications should be accepted. In addition, if all the existing policies of an insurance company are examined, a much broader range of facts and rules can emerge. When somebody applies for a life insurance policy, he expert system asks the individual questions about heir age, whether they smoke, about their health record and so on. Based on the responses, it will make recommendations as to whether the policy should be issued, for what length and at what cost.