Why the Rules Engine Is the True Insurance Product Configurator

MARCIN NOWAK
July 1, 2025

In the world of insurance, products are built on hundreds of parameters, dependencies, and business rules. Traditionally, these rules were buried deep in IT systems, making any change slow and risky. Today, the industry is shifting to a new approach: treating the business rules engine (BRMS) as the central product configurator and for good reason.

What Is an Insurance Product Configurator?

An insurance product configurator is a tool that lets insurers define, manage, and update every aspect of their products: coverage items, risk packages, pricing, eligibility, and more. But in practice, the most advanced configurators are actually modern rules engines. The rules engine is not just a technical add-onmit’s the brain and heart of the insurance systems.

Why Rules Engine = Product Configurator

The rules engine (BRMS) is where all the business logic, parameters, and product structures live. In a well-designed insurance system, the rules engine gives business users the power to:

  • Define and modify insurance products, coverage, and risk bundles
  • Set pricing, tariffs, and discount logic
  • Manage eligibility, exclusions, and dependencies
  • Control policy wording and attach only relevant clauses
  • Centrally maintain data dictionaries and reference tables
  • Launch new products or variants in hours, not months

Every change made in the rules engine is instantly available across all integrated systems: sales portals, policy administration, claims, and more. This is what makes the rules engine the true product configurator.

Parametrization at the Core

Parametrization means that every important variable: coverage limits, rates, discounts, eligibility, even legal clauses—can be managed and updated centrally. The rules engine is the single source of truth for all these parameters. This centralization eliminates duplication, reduces errors, and ensures that every system in the company uses the same definitions.

The Business Value

Treating the rules engine as your insurance product configurator brings tangible benefits:

Benefit Description
Speed Launch products, make changes, or respond to market shifts instantly
Agility Adapt to regulatory updates or introduce new offerings without disruption
Transparency Track and audit every rule, version, or product adjustment
Consistency Apply the same logic across all customer touchpoints and systems
Experimentation Test pricing or eligibility changes without risk to your core systems

Real-World Examples

  • Launching a new product variant: Duplicate and adjust existing rules, deploy instantly.
  • Regulatory change: Update exclusions or terms centrally, go live the same day.
  • Targeted discount: Add a new parameter, limit by segment, monitor results in real time.
  • Managing policy wording: Attach only relevant clauses to each risk, keep all versions under control.

The Rules Engine as the Heart of Insurance

In modern insurance architecture, the rules engine is not just a technical component it’s the heart of the business. It powers the insurance product configurator, drives the business engine, and serves as the central BRMS platform. Without it, true agility and innovation are impossible.

For insurers aiming to lead in a digital world, understanding and embracing this approach is essential. The rules engine is your product configurator, your business engine, and your foundation for future growth.

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