US carrier Grange Insurance is set to write 36 month commercial package policies in a move it says will help it differentiate itself from its competitors.
The Columbus, Ohio-based insurer said that the offering would allow policyholders to have consistent, stable rates and terms and conditions for three years, along with a streamlined annual update process.
The company added that it is one of only a few insurance carriers to offer such a multi-year policy to commercial insureds.
Although multi-year policies are quite commonplace in the reinsurance market - particularly in the soft phase of the cycle - they are not typically as widely seen in the commercial insurance space.
A willingness to offer multi-year coverage in reinsurance is usually seen as a sign that underwriters expect pricing to further soften, while buyers are likelier to push for multi-year deals if they want to lock in low rates because they think the market may have reached the bottom.
Mike Winner, president of commercial lines at Grange Insurance said: "As part of our commitment to independent agents and growing their commercial business, Grange is making significant investments to transform ourselves into a commercial carrier of choice."
The insurer said that while rate, terms and conditions would be fixed for the term of the policy, insureds would be able to update coverage to reflect business and risk exposure changes. They could also combined the multi-year policy with other annual policies within a single account.
Last year, AM Best A-rated Grange Insurance wrote $1.21bn of premium with a combined ratio of 93.7 percent across its consolidated commercial, personal lines and life operations.