FM announced on Thursday that its policyholders will collectively receive approximately $825 million as a credit to support investments in climate-related and operational risk improvements.
The resilience credit, previously set at 5% for 2025, will increase to 10% as a premium offset for eligible FM policies renewing in 2026, the Johnston, Rhode Island-based insurer confirmed.
FM has expanded the resilience credit, which was initially focused solely on climate mitigation, to include a broader range of operational areas. This provides policyholders with a more comprehensive approach to preventing losses and strengthening resilience.
The insurer’s advanced analytics now assess human factors, fire protection, and boiler and machinery recommendations that are most likely to prevent losses, allowing for more targeted capital investments.
Since its launch in 2022, the resilience credit has helped organisations implement recommendations to guard against wind, flood, and wildfire risks, reducing the potential economic impact of these perils by over $30 billion.
FM estimates that the improved resilience credit could achieve an additional $35 billion in annual loss expectancy reductions.
In addition, the company has introduced an enterprise resilience report, which combines climate and operational exposures to provide policyholders with a comprehensive view of their property risk landscape.
FM also unveiled FM Solutions, a new business unit led by Chief Sustainability Officer Kashia Moua. The unit brings together FM’s property valuation services and consulting expertise in business risk, cyber risk, and sustainability to offer a more efficient and integrated service for clients.
Originally focused solely on climate mitigation, the resilience credit has now been expanded to include a broader range of operational areas, such as human factors, fire protection, and boiler and machinery safety. By leveraging advanced analytics, FM can now prioritize recommendations that are most likely to prevent losses, enabling policyholders to make more targeted capital investments.
Since its launch in 2022, the resilience credit has helped organizations implement measures to guard against wind, flood, and wildfire risks, reducing the potential economic impact of these perils by over $30 billion. FM estimates that the updated credit could achieve an additional $35 billion in annual loss expectancy reductions.
To complement the credit, FM introduced the Enterprise Resilience Report, which combines climate and operational exposures to give policyholders a comprehensive view of their property risk landscape.