JOHNSTON, R.I., USA, September 12, 2023 – Commercial property insurer FM Global today announced its second consecutive resilience credit to support client investment in climate resilience solutions. The resilience credit, collectively worth approximately US$350 million, will be shared among FM Global’s clients, providing them with additional resources to guard against extreme weather hazards such as wind, flood and wildfire.
The new allocation builds on the success of FM Global’s first-ever resilience credit last year. Following allocation of the 2022 resilience credit of US$300 million, FM Global clients accelerated implementation of natural hazards-related recommendations, driving a potential reduction in economic impact of up to US$20 billion. Over the last year, FM Global clients leveraged the resilience credit to invest in a variety of risk mitigation efforts, including flood protection projects such as levees, walls or specialized doors; fire breaks to shield against wildfires; and reinforced roofs for extreme snow.
“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 customers, colleagues and communities.”
United Therapeutics leveraged the 2022 resilience credit to strengthen flood mitigation at its Manchester, New Hampshire, research and development facility. Installation of additional mitigation devices will be completed by the end of 2023. “We share FM Global’s belief that the majority of all loss is preventable,” said Christina Donnelly, vice president of enterprise risk management for United Therapeutics. “We are proud to partner with FM Global to continuously improve our organizational resilience.”
Adient, an automotive seating company based in Plymouth, Michigan, leveraged the 2022 resilience credit to support several key climate risk mitigation projects, including building and replacing flood barriers and reinforcing roofs and walls to protect against wind.
“The resilience credit is a very good initiative and one more factor that differentiates FM Global in the property insurance world,” said Rob Milligan, vice president of risk management at Adient. “The additional resilience credit this year will continue to support climate risk projects and help us prioritize our risk mitigation efforts.”
The resilience 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.
The new resilience credit combines with a suite of climate resilience products launched by FM Global in the last year, confirming its position as a leader in climate risk. The suite of products includes the Climate Change Impact Report, which helps clients identify, understand and avoid future climate-related risk as far in the future as 2050; the Climate Risk Report; and the Climate Reporting Aid.
About FM Global
Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its policyholder-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every four Fortune 500 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.