FM Global Invests $300M in a More Resilient Tomorrow

Resilience credit a potential game-changer for mutual owners

FM Global policyholders—one of every three Fortune 500 organizations and similar sized companies—recognize that businesses can't stop the weather, but they can reduce its impact to their operations through science-based risk reduction solutions. To support our clients in their efforts to make their locations more resilient, eligible policyholders will receive a first-of-its-kind US$300M resilience credit.

The credit will provide our policyholders with added financial means to invest in climate resilience, especially flood, wind, and wildfire exposures, which can threaten an organization's bottom line. It has the potential to help our mutual owners reduce total loss expectancies from those exposures by more than US$120 billion. The result could have a significant, resounding economic impact, including the long-term, positive effects for customers, colleagues, and communities.

“Receiving the credit is a unique benefit for our mutual owners. As a mutual company, we share our success with our policyholders to help keep their businesses going - and growing.”

Malcolm Roberts, president and chief executive officer

Receiving the credit is a unique benefit for our mutual owners. As a mutual company, we share our success with our policyholders to help keep their businesses going - and growing. The credit is also timely: it complements a suite of new climate resilience solutions that we'll launch this fall to help our clients assess their climate risk exposures in order to target areas for risk improvement.

"With rising business disruption due to climate risk and companies increasingly focused on ESG strategies, the resilience credit is a potential game-changer for our clients, many of which are key contributors to the economy and society," said Malcolm Roberts, president and chief executive officer. "This credit is made possible through our mutual ownership structure and risk engineering focus to support business continuity and climate risk mitigation efforts."

Roberts says he sees the credit as part of a circle of resilience. "The more our clients apply the resilience credit to improving their facilities, the more likely they are to have lower losses, which means we have better results as a mutual insurance company. And when we have better results, we can put more of our capital back to work for our mutual policyholder/owners because we're accountable to them—it's their money."

The credit will be applied as a 5% premium offset against FM Global policies with renewals or anniversaries between October 1, 2022, and September 30, 2023, and will be calculated based on eligible in-force premium in effect 90 days prior to the renewal, or on the policy anniversary date.

The resilience credit, along with our new suite of solutions coming this October, represents our significant investment in helping our clients avoid major business disruptions and strengthen their resilience in the face of potential climate-related events. We look forward to the continued partnership and commitment to loss prevention with our clients as we help them invest in a more resilient tomorrow.

FM Global resources

FM Global provides many resources that can help you prepare for climate risks.