TLP Insurance Developed Using BizVR

The Business

We provide insurance to the porcine community.

The Business Decision

We need to be able to determine the overall risk associated with a particular policy application in order to determine the premium The overall risk is based on a number of factors:

• property risk
• financial stability
• coverage risk

The Business Rules

RULE STATEMENTS

Rules for determining overall risk

1. if financial_risk = 'high' then overall_risk is 'very high'
2. if coverage_risk = 'high' then overall_risk is 'very high'
3. if property_risk = 'high' then overall_risk is 'very high'
4. if financial_risk = 'low' and coverage_risk = 'low' and property_risk = 'low' then overall_risk is 'low'
5. if financial_risk = 'medium' and coverage_risk = 'medium' or = 'low' and property_risk = 'medium' or = 'low' then overall_risk is 'medium
6. if financial_risk = 'medium' or = 'low' and coverage_risk = 'medium' and property_risk = 'medium' or = 'low' then overall_risk is 'medium
7. if financial_risk = 'medium' or = 'low' and coverage_risk = 'medium' or = 'low' and property_risk = 'medium' then overall_risk is 'medium

Rules for determining coverage risk

1. if peril = 'wolf' then coverage_risk is 'high'
2. if peril = 'wind' then coverage_risk is 'low'
3. if peril = other then coverage_risk is 'medium'

Rules for determining financial risk

1. if bankruptcies > 1 then financial_risk is 'high'
2. if years_at_current_address <= 5 and bankruptcies = 1 then financial_risk is 'medium'
3. if years_in_business <= 5 and years_at_current_address > 5 and bankruptcies = 1 then financial_risk is 'medium'
4. if years_in_business > 5 and years_at_current_address > 5 and bankruptcies = 1 then financial_risk is 'low'
5. if bankruptcies < 1 then financial_risk is 'low'

Rules for determining property risk

1. if value > 100000 then property_risk is 'high'
2. if value in [50000..100000] then property_risk is 'medium'
3. if value < 50000 then property_risk is 'low'

The Decision Model