FM Global has announced it will allocate US$300 million to a first-of-its-kind ‘resilience credit’ to help policyholders invest in climate resilience solutions.
The resilience credit has the potential to help its policyholders reduce total loss expectancies related to wind, flood, and wildfire exposure by over US$120 billion, which, in turn, can magnify their positive impact on customers, colleagues, and communities.
“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 of FM Global. “This credit is made possible through our mutual ownership structure and risk engineering focus to support their business continuity and climate risk mitigation efforts.”
FM Global will apply the credit as a 5% premium offset against policies with renewals or anniversaries between October 1, 2022, and September 30, 2023. It will also calculate the credit based on eligible in-force premium in effect 90 days before the current policy's renewal or anniversary date.
The global insurer will also introduce a new suite of climate resilience solutions 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 said.
The launch of the one-of-its-kind resilience credit and plan to introduce new climate resilience solutions follow the release of FM Global's Resilience Index.