Multicurrency and basis units

Certain types of exposures, such as in General Liability, measure risk by the number of basis units. In some cases, insurers measure the basis units in currency: 100 units of sales per $1000, for example. In other cases, the basis units are not measured in currency: 300 basis units of area per acre. In a General Liability submission, the Policy Review screen displays basis units for an exposure. Under Exposure Value by Location, each row has an Exposure Type and Exposure Value column. The Exposure Type displays the basis units for the exposure. The Exposure Value displays the number of basis units. This is just one example of a place where PolicyCenter displays basis units.

In a multicurrency system, the insurer does not necessarily match the currency of the basis unit with the policy or coverage currency. For example, one insurer’s actuarial tables for an exposure are only in U.S. dollars. The Exposure Type column displays Sales per $1000 regardless of the policy or coverage currency. Another insurer may change the currency of the basis units based on business rules.

In the base configuration, columns displaying basis unit are not part of the multicurrency product model configuration. You can configure the PolicyCenter user interface to display different basis unit strings in these columns by adding your business logic to the PCF file and associated code. The Exposure Type column strings are defined in the class_code_basis.xml system table. You may also need configure the rating engine to rate the exposure in the correct currency.