FM Global Clients to Get Share of $350M ‘Resilience Credit’

Eligible commercial property insurance clients of FM Global will receive a share of what the insurer calls a “resilience credit” to be put toward climate mitigation solutions.

Collectively worth $350 million, the initiative follows the allocation of a $300 million resiliency credit in 2022, and will again provide clients with additional resources to guard against extreme weather hazards such as wind, flood and wildfire, said FM Global.

Related: FM Global Puts Aside $300 Million for Policyholders’ ‘Resilience Credit’

According to mutual insurer, clients last year “accelerated implementation of natural hazards-related recommendations, driving a potential reduction in economic impact of up to $20 billion.” Clients used the credit for risk-mitigation efforts such as levees, walls or specialized doors for flood protection; fire breaks to shield against wildfires; and reinforced roofs for extreme snow.

“With the increasing frequency of disruptive events around the globe, our clients need the tools and resources to invest in risk mitigation solutions and support business continuity,” said Malcolm Roberts, president and CEO of FM Global. “The resilience credit enables our mutual owners to protect against climate change risk today, invest in tomorrow, and make a positive impact on their customers, colleagues and communities.”

The credit will be applied as a 5% premium offset against eligible FM Global policies with renewals or anniversaries between Oct. 1, 2023, and Sept. 30, 2024, and will be calculated based on eligible premium in effect 90 days prior to the renewal or anniversary date of the prior policy, the Johnston, Rhode Island-based insurer said.

FM Global said the new resilience credit combines with a suite of climate-resilience products such as its Climate Change Impact Report, which helps clients identify, understand and avoid future climate-related risk as far in the future as 2050; the Climate Risk Report; and the Climate Reporting Aid.