FM Makes Third ‘Resilience Credit’ With $400M for Clients

Eligible commercial property insurance clients of FM will receive a share of $400 million in what the insurer calls a “resilience credit” to be put toward climate mitigation solutions.

This is the third resilience credit allocated since FM announced the program in 2022, bringing to total to $1 billion. Past credits have been used by clients to make improvements to protect against wind, flood, and wildfire based on FM recommendations.

The mutual insurer based in Johnston, Rhode Island said “recent catastrophic hurricane events in the southeastern United States highlight the importance of strengthening communities and helping businesses understand their risks and protect against natural hazards.”

Related: FM Global Clients to Get Share of $350M ‘Resilience Credit’ | FM Global Puts Aside $300 Million for Policyholders’ ‘Resilience Credit’

“The FM resilience credit highlights the essential role that mutual partnership plays with our clients in our work together to protect their purpose and drive risk out of their organization,” said Malcolm Roberts, chairman and chief executive officer of FM. “The resilience credit represents a unique program in the industry, and we are proud to enable client investment in the resiliency and future of their operations.”

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FM launched a renewable energy unit earlier this year to assist clients in the transition to alternative energy and support the renewable energy industry. The insurer said it is encouraging clients to use the resilience credit to support its recommendations related to solar panels, wind farms, or other renewable energy initiatives.

The resilience credit will be applied as a 5% premium offset against eligible FM policies with renewals or anniversaries between Jan. 1, 2025, and Dec. 31, 2025, and will be calculated based on eligible premium in effect 90 days prior to the renewal or anniversary date of the prior policy, FM said.