The credit will be applied as a 5% premium offset against policies with renewals between 1 October 2022 and 30 September 2023
Policyholders of FM Global, which include one of every three Fortune 500 companies and similar size organisations worldwide, will collectively receive approximately $300m in a ‘resilience credit’, providing them with additional means to invest in climate resilience solutions.
The credit will be applied as a 5% premium offset against policies with renewals or anniversaries between 1 October 2022 and 30 September 2023, and will be calculated based on eligible in-force premium in effect 90 days prior to the renewal or anniversary date of the current policy.
The credit has the potential to help organisations reduce total loss expectancies related to wind, flood and wildfire exposure by more than $120 billion which, in turn, can magnify their positive impact on customers, colleagues and communities, according to FM Global data.
“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 their business continuity and climate risk mitigation efforts.”
The insurer will also introduce a new set of climate resilience solutions later in the year to help clients assess climate risk exposures and prioritise their risk improvement investments.
“Combined, this new suite of tools, along with the resilience credit, represents a significant investment in helping keep our clients’ businesses going and growing strong,” Roberts added.