Zurich is piloting two-year price guarantees for motor fleet business as part of a package of risk management advice to selective clients.
Depending on customer feedback Zurich is planning to roll out the scheme nationally in the first quarter of 2001.
The Anglo-Swiss insurer is believed to be the first to offer fleet insurance contracts on a two-year basis.
Price deals lasting longer than one year have been pioneered in the more stable commercial property market, but not, it appears, in the £3bn motor fleet market, which has seen wide price fluctuations.
Rates have risen by 20% in 2000 and are expected to show similar increases next year.
Bob Pope, customer solutions manager at Zurich, revealed the insurer had signed more than 20 two-year contracts, in-volving a mix of new and conversion business, since the pilot began two months ago.
He said the deals were offered to clients that have undergone a risk management audit and had instituted additional training for drivers with the poorest driving records.
Pope said brokers' endorsement of the scheme would be crucial to its success because of their dominance of the market – 95% of motor fleet business is broked to insurers.
He added: "We need the support of brokers because they are in the best position to change the approach of clients towards stable price deals."
