Managing FX Risk in Practice Across Global Insurance Operations

Bringing certainty to cross-border insurance

Insurance turns uncertainty into something that can be understood, priced, and managed. For Shepherd Compello, that philosophy doesn’t stop at underwriting. It shapes how the business approaches every financial decision, including how money moves across borders and currencies.

Operating across multi-currency insurance markets

Operating across European markets supported by Lloyd’s and broader international insurance environments, Shepherd Compello focuses on highly specialized risks including transport and agricultural equipment warranties, cyber insurance, and data security.

As the business expanded across the United Kingdom, North America, Europe, and other international markets, it became clear that managing multi-currency operations required a more structured approach.

Managing FX risk and operational complexity

As the business scaled internationally, managing FX risk and operational complexity became a critical challenge. Currency exposure is a recurring and material consideration, while volatility can erode margins that have been carefully priced.

Traditional banking systems are not always designed for international growth, creating friction in managing payments, reconciliation, and multi-currency flows.

Currency exposure and FX uncertainty

Currency exposure across multiple markets requires continuous oversight, particularly when pricing predictability is affected by fluctuating exchange rates.

Operational and banking challenges

Managing international payments, monitoring transfers, and reconciling multi-currency transactions can take up significant time and introduce operational bottlenecks.

Building a structured approach to FX risk

Rather than reacting to volatility, Shepherd Compello applies a structured approach to FX risk, focusing on understanding exposures clearly and controlling what can be controlled.

Managing multi-currency flows with flexibility

Premiums, claims, and expenses span USD, GBP, EUR, CAD, and other currencies, with approximately $50 million converted annually. Most income is received in foreign currencies, while costs are largely in sterling.

A flexible approach allows the business to manage varying currency flows, using forward contracts selectively for future cash flows and larger exposures requiring internal approval.

Improving visibility and FX execution

Corpay provides market insight and FX guidance, ensuring the business is regularly informed of relevant market movements. This visibility helps the finance team anticipate exposures, make informed decisions at the right time, and manage FX risk more effectively without continuous internal monitoring.

Streamlining international payments

Beyond larger FX decisions, Corpay simplifies smaller international payments that are often more costly and time-consuming through traditional banking systems. Faster execution, fewer delays, and a consistent point of contact reduce operational friction in day-to-day activity.

Achieving predictable financial outcomes

FX risk is controlled, international payments are streamlined, and financial outcomes remain predictable. This allows the business to stay focused on underwriting performance while supporting continued international growth.

Read the full case study to see how Shepherd Compello manages FX risk and multi-currency operations with Corpay Cross-Border.

Cross-Border

Global payments

Risk management