Exchange rate for multicurrency policies

The exchange rate is the rate at which one currency is exchanged for another. In general, the exchange rate is from one currency to another and often not reciprocal in the other direction. For example, an exchange rate market has one exchange rate for converting euros to U.S. dollars and another for converting U.S. dollars to euros. Currency exchange markets, such as the London Market, set exchange rates and fees. Exchanges rate vary with time.

Each insurer will have their own requirements such as how often to refresh the exchange rate or which market rates to use. Therefore, the base implementation of PolicyCenter includes an example exchange rate service which demonstrates rating with multicurrency policies. PolicyCenter obtains the exchange rates from a static table which is not updated. Guidewire expects that each insurer will implement their own exchange rate service.

See also

• Implementing an exchange rate service