will allow risk managers to forget about managing insurance and concentrate on what they do best -- managing risk.

The new service is called ACE Futures and is designed to lock in the rates, terms and conditions of existing property policies for up to three years in advance.

The company, a subsidiary of Insurance giant ACE Ltd, claim to provide a financial hedge for companies worried that the current favourable pricing climate in commercial insurance may not last. Unlike multi-year insurance policies which can often be cancelled mid-term with 30, 60 or 90 days notice, ACE Futures are uncancellable for the entire option period.

"Many risk managers have experienced drastic changes in insurance conditions after their company suffered a large loss or after a major natural catastrophe led to a tightening of the insurance market,'' said Klaus Gebhardt, senior vice president of property at ACE Bermuda.

"For a fraction of their annual premium, risk managers can now obtain long-term rate stability irrespective of their current insurance programme.

They can avoid unplanned surprises and do what they do best: manage risk and not insurance.'' Purchasers of ACE Futures will obtain a guaranteed capacity at a guaranteed rate at a future date. Every contract is tailored to specific customer needs and is designed to replace entire an property insurance programme or substantial parts of it in times of need.