PRODUCT: 36-month package policy

COMPANY: Grange Insurance

BEST RATING: A (Excellent)

AVAILABILITY: Coverage is available through appointed agents and brokers.

FOCUS: Grange Insurance’s new 36-Month Package Policy gives commercial policyholders that qualify the opportunity to have consistent, stable rates, terms and conditions for 36 months, along with a streamlined annual update process—an alternative to traditional annual policies where the rate can change each year.

The idea arose from discussions with Grange’s agent advisory board, says Mike Winner, president of commercial lines for Grange. “There are very few companies out there that have a product like this,” he points out. “It aligns with our desire to grow commercial lines with an approach that would help differentiate us. It shows our commitment—not only to our agents, but to our insureds—by our willingness to commit to them for three years.”

Though the rate, terms and conditions remain the same, 36-month policyholders can still update their insurance policy mid-term and adjust the overall premium to reflect business and exposure changes, such as adding more employees or streamlining operations. Businesses can also pair the 36-month package policy—which includes property and general liability coverages—with other annual policies, such as commercial auto, umbrella and workers comp, within a single account.

UNDERWRITING: Winner notes that the underwriting process and factors for the 36-month policy are not that much different than for other commercial coverages. “We want good, strong insureds, and frankly, strong agency relationships,” he says. “It’s really about the stability and the strength of the insured.”

Underwriters favor companies with predictable loss performance and business growth. A consistent growth pattern with modest exposure changes is the best fit for the three-year policy. “It’s a partnership between the agency and our underwriter relative to accounts that make sense for a three-year policy, because it doesn’t make sense for all of them,” Winner explains.

MINIMUM PREMIUM: $15,000.

TARGET: While Winner says Grange has tried not to put too many guidelines around how the company uses the 36-month product, there are some floors. “We’re probably not using it on a lot of smaller accounts,” he says. “It’s really designed for package accounts with typically at least $15,000 in premium volume and up. When you translate that to an account size, that would be obviously a larger account.”

But Winner adds that $15,000 minimum premium is not a hard and fast rule—Grange underwriters have some latitude in their decision making: “While we have basic guidelines, we want them to have the flexibility to use the product to partner with their agents to successfully write new business.”

COVERAGE TERRITORY: GA, IL, IN, IA, KY, MI, MN, OH, PA, TN and WI. The product is scheduled to launch in VA on Feb. 1, 2018 pending regulatory approval.

CONTACT: Mike Winner, president of commercial lines; 671 S. High St., Columbus, OH 43206; 614-445-2711.

Katie Butler is IA editor in chief.