Independent agents placed many orders for life insurance products each day. These orders had to comply with state and federal rules for customer suitability, in that certain kinds of customers couldn't be sold certain kinds of products. They also had to be for genuinely new products, because agents couldn't boost their commissions by replacing preexisting products. Finally, the funds for the product ordered could not be borrowed against another product. Manual processes meant that only a small percentage were reviewed, and many noncompliant orders were missed. Even though the agents were the ones not following the law, the company was paying fines.
A batch-oriented decision service processes all transactions before they run through the system that records them and places orders. This decision service evaluates and validates new business against customer information by applying business rules representing suitability rules, replacement policy regulations, and restrictions on source of funds. In each case, federal, state, and company rules apply, and all three types of rules are managed by businesspeople who understand them. Therefore, the correct set of rules is applied to each transaction, based on data in the transaction.
Benefits