FM will give eligible clients an estimated $855 million through its resilience credit programme in 2027, applied as a 10% offset against premium for the second consecutive year.
The commercial property mutual said the credit reflects extraordinary results and historically low losses. It will apply to eligible policies renewing, or reaching an anniversary, between January 1 and December 31, 2027.
“For two years in a row, we’ve been able to provide an enhanced 10% resilience credit, a testament to the work our clients do every day to drive lasting protection,” said Malcolm Roberts (pictured), FM’s chairman and chief executive.
The 2027 allocation is up from about $825 million for 2026, when FM doubled the credit from 5% to 10% and widened it to include operational risks as well as climate hazards.
FM introduced the resilience credit in 2022, initially to help clients address climate-related risks such as wind, flood and wildfire. Clients can use the credit, together with FM’s engineering and analytics, to carry out FM’s risk improvement recommendations on both climate and operational exposures.
The resilience credit comes on top of FM’s membership credit. In April, the mutual announced a record $1.5 billion membership credit, returning value to policyholders from its results.
FM said the programmes reflect its view that most loss is preventable.
For brokers with clients insured by FM, the credit is a meaningful pricing factor for 2027 renewals. A 10% offset on top of a softening property market, where large accounts are seeing double-digit rate reductions, strengthens FM’s position at a time when competitors are also cutting prices.
The credit is linked to risk improvement, so its full value depends on whether clients act on FM’s engineering recommendations. Brokers can help clients prioritise the improvements that matter most, such as flood defences, roof upgrades, and fire protection or business continuity measures, and plan the spending around the credit.
For the market, FM’s mutual model shows a different way of sharing good results. Instead of only cutting rates, it returns value to policyholders who invest in prevention, rewarding lower risk rather than simply reflecting it in price.
