Rate routines in Rating Management

In Guidewire Rating Management, use rate routines to implement rating algorithms that calculate properties on the cost for coverages, taxes, and other policy costs. The properties on the cost include the base rate, adjusted rate, and term amount. You can also create rate routines that do not calculate these properties. These types of rate routines may set up rating information for use by another rate routine.

Each rate routine has one or more instructions that define the rating algorithm. Each instruction is composed of one or more steps. The steps implement your rating algorithm or provide supporting logic for the algorithm. For example, a step can determine the drivers on a policy or perform a composite calculation.

You define rate routines for a particular line of business. Rate routines at the policy level run after running the rate routines for individual coverages.

For each rate routine, you specify a parameter set which enables you to pass contextual information to the rate routines. In rate routines, parameters provide access to policy details related to rating, such as driver age or policy effective date.

The rating engine defines the criteria that PolicyCenter uses to select the rate routine. For example, the rating engine can select a rate routine by using criteria such as the following:

The line of business.
A coverage on the policy. The rate routine can also apply based on a characteristic of the covered item. For example, you can specify a general rate routine for cars and a special rate routine for sports cars.

In the base configuration, the small and large sample data contains a set of rate routines for the personal auto and commercial property lines of business. Each rate routine has a code, name, and version. To calculate a rate, the rating engine selects the appropriate rate book edition and rate table version. Then, the rating engine executes the rate routine in that rate book to get a cost.