FM : Everything you need to know

FM: Everything you need to know

About FM

Established nearly two centuries ago, FM is a leading 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 to better understand the hazards that can impact their business continuity to make cost-effective risk management decisions, combining property loss prevention with insurance protection.

A history with prevention in its roots

In 1835, a small group of Rhode Island mill owners revolutionized property insurance by taking loss prevention into their own hands. They combined their strength to create a mutual property insurance company that would insure only “good risk” factories—creating the category of “highly protected risk (HPR) properties.” This business idea also provided incentives, because whatever premiums remained at the end of a policy term would be returned to policyholders. 

Other companies joined the group, which became known as Factory Mutuals. Today, FM is a leader in risk management serving many of the world’s largest organizations. It has over 50 offices across North and South America, Latin America, Europe, and Asia-Pacific.

The organisation

With engineering at the center of its risk management, the mutual insurer’s nearly 2000 boots-on-the-ground engineers gather insights and develop innovative technologies along with its global research centers. This helps the company to identify the hazards – natural or man-made – that its clients face and predict the likelihood of exposure. 

FM then delivers tailored solutions and actionable strategies across its six distinct lines of business: 

• FM
• FM Affiliated – helps brokers find tailored commercial property insurance solutions
• FM Approvals – product and service standards
• FM Boiler Re – reinsurance coverage
• FM Cargo – commercial shipping protection
• FM Renewable Energy – policies designed for renewable energy operations

These units aim to keep FM’s clients ahead of risk and their businesses growing.

Global research centers

Fire, explosion, hurricane-force winds, and vibrations matching earthquake intensity are all in a day’s work at the insurer’s FM research centers. The FM Research Campus in Norwood, RI, and FM Science and Technology Centers in Singapore and Norwood, MA are devoted to preventing physical threats from turning into real-life catastrophes. 

The simulations conducted here help clients prepare and protect their facilities before disaster strikes. Each laboratory focuses on a specific hazard:

• fire technology
• natural hazards
• electrical hazards
• hydraulics

FM’s Luxemburg center slated to open in 2027.

Key differentiators

Engineering services: Scientific research conducted exclusively for property risk with local engineers who assess facilities
Claims: Policyholder workshops and pre-loss planning to ensure clients understand their coverage before it applies, not after; empowered in-house claims adjusters
Client partnerships: Mutually beneficial long-term partnerships with active collaboration on clients’ risk management goals
Dual delivery: Two access channels – direct basis or thorough an intermediary broker
Business risk consulting: Values calculation, reporting services and on-site property valuations to improve accuracy and ease of reporting business income values; total financial loss modeling services
Specialty focus: Insurance offerings 100 percent focused on protection of commercial property; expertise of scientists, engineers, underwriters and claims specialists trained in high-challenge occupancies
Global delivery: Seamless service delivery based on a global master policy with matching underlyer policies
Mutuality: Long-term, strategic view of risk; large amount of capacity and financial success shared with clients via policyholder credits