FM Global’s Eligible Clients Benefit From A US$350 Million Resilience Credit In 2023/2024
Second resilience credit follows inaugural US$300 million in 2022/2023, which has the potential to reduce up to US$20 billion of loss expectancy for clients
For the second consecutive year, eligible FM Global clients—one of every four Fortune 500 organizations and similar-sized companies—will collectively receive a resilience credit to invest in climate resilience solutions. This year's allocation of approximately US$350 million will support clients' efforts to make their locations more resilient, supporting their businesses so they can be there for customers in the face of climate change.
The new allocation builds on the success of FM Global's first-ever resilience credit last year. Following allocation of the 2022 credit of US$300 million, FM Global clients accelerated implementation of natural hazards-related recommendations, having the potential to reduce up to US$20 billion of loss expectancy. Over the last year FM Global clients leveraged the credit to invest in a variety of risk mitigation efforts, including flood protection projects such as levees, walls, or specialized doors; forest 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.”
Malcolm Roberts, president and chief executive officer of FM Global
"Investing in resilience is more important than ever," said Malcolm Roberts, president and chief executive officer of FM Global, noting that climate-related perils continue to impact FM Global's clients and drive the current insurance market.
"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 Roberts. "The resilience credit enables our mutual owners to protect against climate change risk today, invest in tomorrow, and make a positive impact on their communities, colleagues, and customers."
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.
New products provide investment insight
The resilience credit combines with the company’s award-winning suite of climate resilience products developed by FM Global’s leading climate researchers and engineers. Products include the Climate Change Impact Report, which helps clients identify, understand, and protect against future climate-related risk potentially as far in the future as 2050; the Climate Risk Report, which provides a score for visited locations most at risk for climate perils that are within or beyond an organizations’ control; and the Climate Reporting Aid, which shows CSOs and others responsible for ESG reporting how to use their FM Global risk profile information in climate-related reporting.
Receiving the credit is a unique benefit for FM Global’s mutual owners. As a mutual company, FM Global shares its success with policyholders. Together, all these companies complete the circle of resilience.
The resilience credit, along with our new suite of climate resilience products, represents a 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.