Policyholders of FM Global, which include one of every three Fortune 500 companies and similar size organisations worldwide, will collectively receive approximately USD 300 million in a first-of-its-kind “resilience credit”, providing them with additional means to invest in climate resilience solutions. The credit has the potential to help those organisations reduce total loss expectancies related to wind, flood and wildfire exposure by more than USD 120 billion which, in turn, can magnify their positive impact on customers, colleagues and communities, according to FM Global data.
“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,” says Malcolm Roberts, president and chief executive officer. “This credit is made possible through our mutual ownership structure and risk engineering focus to support their business continuity and climate risk mitigation efforts.”
In addition to the credit, later this year, FM Global will introduce a new suite of climate resilience solutions that can 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 adds.
The credit will be applied as a 5% premium offset against FM Global policies with renewals or anniversaries between Oct. 1, 2022, and Sept. 30, 2023, and will be calculated based on eligible in-force premium in effect 90 days prior to the renewal or anniversary date of the current policy.