FM Commits Over US$1 Billion to Enhance Client Resilience Against Extreme Events
In a significant move to bolster the preparedness of its clients against increasing natural disasters, commercial property insurer FM has announced its third resilience credit. This latest allocation brings the total investment in this program to over US$1 billion since its inception in 2022. This substantial financial commitment underscores the growing importance of protecting businesses from the impacts of extreme weather events, particularly in the wake of recent catastrophic hurricanes in the southeastern United States.
The newly announced allocation of approximately US$400 million, combined with previous resilience credits, provides eligible FM clients with valuable resources to safeguard their operations against the escalating frequency of natural hazards. This financial support empowers clients to implement recommendations designed to mitigate the risks posed by wind, flood, and wildfire, potentially reducing economic impact by over US$30 billion.
A Unique Partnership for Sustainable Business Practices
Malcolm Roberts, chairman and chief executive officer of FM, emphasizes the significance of this initiative, stating, “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.” The program stands out as a unique offering in the industry, empowering clients to invest in both the resiliency and future of their operations.
Beyond Climate Protection: Embracing Renewable Energy Solutions
FM is not only focused on protecting against climate risk; the company is actively promoting the transition to alternative energy sources. Earlier this year, FM established a Renewable Energy unit dedicated to research, innovation, and support for the advancement of the renewable energy industry. The resilience credit encourages eligible clients to leverage this program to invest in solar panels, wind farms, and other renewable energy infrastructure, further bolstering their sustainability efforts.
A Practical Application for Enhanced Business Continuity
The resilience credit is applied as a 5% premium offset against eligible FM policies, effective for renewals or anniversaries between January 1, 2025, and December 31, 2025. The credit is calculated based on the eligible premium in effect 90 days prior to the renewal or anniversary date of the prior policy.
FM: A Legacy of Risk Management and Resilience
Established nearly two centuries ago, FM is a leading mutual insurance company dedicated to property risk management and the resilience of its policyholder-owners. These owners, representing many of the world’s largest organizations, including one of every four Fortune 500 companies, share the belief that property loss is largely preventable. Working collaboratively with FM, they strive to understand the hazards that can impact their business continuity and make cost-effective risk management decisions. This approach combines property loss prevention with insurance protection, ensuring a comprehensive strategy for mitigating risk and safeguarding business operations.