FM Global, one of the world’s largest commercial property insurers, has announced that its eligible policyholders will receive an estimated total of $600 million in membership credit when they renew their policies between January 01 and December 31, 2022.
Over the past 12 months, FM Global’s clients have completed more than 50,000 of its engineering-driven risk improvement recommendations, resulting in about $700 million of loss exposures mitigated, the company said.
“Despite a world facing increasing risks and the continuing challenges of the COVID-19 pandemic, our policyholders’ proactive approach to property risk improvement continues to contribute to their resilience and their ability to mitigate losses,” said Thomas A. Lawson, chairman and CEO of FM Global. “As a mutual insurance company, the membership credit is one way we recognize our client-owners for making a strategic decision to choose resilience.”
The membership credit eligible policyholders will receive will be based on their premium and tenure, and applied as an offset against premium at their renewal or anniversary date, FM Global said. Some clients have been FM Global policyholders since the late 1800s.
FM Global clients holding policies for:
- Fewer than five years will be eligible for a 5% credit
- At least five consecutive years but fewer than 20 years will be eligible for a 10% credit
- At least 20 consecutive years will be eligible for a 15% credit
An overview of the 2022 membership credit plan, including eligibility, timing, and the basis for calculations, is available on FM Global’s website.