Types of multicurrency policies

Single currency policy

Many single-country insurers write policies in a single currency and accept payments in that currency. In a single currency system, you use a single currency for rates, premiums, and other monetary aspects of the policy. The user is not aware that PolicyCenter supports multiple currencies. However, when you configure a single currency implementation, be aware that monetary objects are designed to handle more than one currency. These monetary objects appear in the data model, the product model, Gosu code, PCF files, and APIs.

For information about how to configure PolicyCenter as a single currency system, see Configuring PolicyCenter for a single currency.

Single currency policy with choice of currency

PolicyCenter provides support for single currency policies in which the user can choose the currency for each policy.

For example, an insurer in the United States writes homeowners policies to insure assets in North America. One customer has properties in the United States and Canada. The insurer creates two separate policies in this customer’s account. One policy insures the United States property in U.S. dollars. The other policy insures the Canadian property in Canadian dollars.

Policy with coverages in different currencies

Some insurers with multinational clients need to value coverage terms in more than one currency within a single policy. For example, an insurer provides coverages for the insured’s London office with limits and deductibles in British pounds. In the Berlin office, coverage limits and deductibles are in euros. The premium and other amounts due are in British pounds. In PolicyCenter, you can have a single policy that includes coverages in different currencies. In the base configuration, each policy can have only one settlement currency.

You can modify a line of business, such as Commercial Property, to include policies with coverages in different currencies. In the base configuration, PolicyCenter sets the currency for a coverage to the preferred coverage currency of the coverable. Through configuration, you can modify PolicyCenter so that coverages on a coverable can have different currencies.

See also

• Creating multicurrency policy lines
• Configuring the coverage currency