Commercial property insurer FM  has announced its third resilience credit allocation, totalling over US$1 billion since the programme began in 2022.

The insurer says that this latest credit, approximately US$400 million, aims to provide eligible clients with additional resources to strengthen operations against rising climate-related risks.

The recent hurricanes in the southeastern United States have underscored the need for enhanced community resilience and risk awareness. FM noted that its resilience credit programme is intended to help clients address vulnerabilities to natural hazards such as wind, flood, and wildfire.

To date, clients who have received prior resilience credits have implemented FM-recommended risk management measures, leading to an estimated US$30 billion potential reduction in economic impact from natural hazards.

Malcolm Roberts (pictured above), FM’s chairman and chief executive officer, noted that the 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 organisation.”

According to Roberts, the resilience credit is distinct within the insurance industry, providing financial support for clients to enhance the resilience of their businesses.

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This year, FM also introduced a Renewable Energy unit, aimed at assisting clients in transitioning to alternative energy sources through research and innovation.

Alongside climate risk protection, FM is encouraging clients to apply the resilience credit, where suitable, to support measures in renewable energy, including solar panel or wind farm installations.

The resilience credit, structured as a 5% premium offset, will apply to eligible FM policies with renewal or anniversary dates from January 1, 2025, to December 31, 2025. Eligibility will be based on premiums in place 90 days before the renewal or anniversary of the previous policy.

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