This paper proposes a finite state machine (FSM) based approach for Web service business policy customization that can address two key challenges: automated policy detection and evaluation and dynamic web service deployment. We have applied this technique on insurance domain in order to customize insurance policies for various types of customers. The business process for the insurance domain are identified and represented as finite state machine then the corresponding web ontology file is generated from the FSM. The use of web ontology engine at runtime enables dynamic deployment of a business process as a result of a business policy customization associated with the web services.
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