FM Boosts Resilience Credit Allocation To US$825 Million

Commercial property insurer FM has announced it is expanding its innovative resilience credit to include a new operational resilience component and doubling the size from 5% to 10% of eligible in-force premium. The enhanced FM resilience credit is intended to enable eligible FM clients to invest in loss prevention and resilience solutions.

Today’s announced allocation of approximately US$825 million highlights the strong partnerships FM forges with clients and their shared commitment to resilience and loss prevention. The enhanced credit builds on the foundation of the FM resilience credit by extending its focus beyond climate to support additional operational areas, offering a more holistic approach to strengthening resilience. FM’s advanced analytics now identify human element, fire protection, and boiler and machinery recommendations most likely to prevent loss, enabling more targeted capital expenditures.

The enhanced FM resilience credit adds a powerful tool to FM’s unique engineering expertise and data and analytics capabilities, allowing clients to turn recommendations and guidance into tangible improvements to their operational resilience and business continuity.

Launched in 2022, the FM resilience credit represented a first-of-its-kind program in commercial property insurance, supporting FM clients in making crucial climate-related risk improvements. As a result of the program, FM clients increased implementation of recommendations made to protect against natural hazards such as wind, flood and wildfire, driving a potential reduction in economic impact of nearly US$80 billion. While clients can continue to use the credit to address climate risks, they can now also use it for operational resilience. The enhanced FM resilience credit could promote an additional US$35 billion in annual loss expectancy reductions.

“Following the incredible success of the FM resilience credit, we are proud to significantly expand the program to support all aspects of resilience for our clients,” said Malcolm Roberts, chairman and chief executive officer of FM. “With the enhanced resilience credit, we are providing clients with even more support and insights to make crucial investments in protection and prevention measures.”

Roberts added: “The strong response from our clients to make risk improvements highlights the power of our partnerships and our shared belief that the majority of losses are preventable.”

Brian Merkley, director of risk management and insurance at Orbia, a global sustainable solutions company, noted that the mutual relationship with FM is unique. When FM does well because its clients invest in improving their risk profile, FM shares that success through its policyholder credits, including the FM membership credit and resilience credit, returning value to clients. “Both the FM membership credit and resilience credit help improve Orbia’s overall bottom line and financial strength, allowing us to implement risk improvements across our portfolio,” said Merkley.

At the same time, FM is also introducing the Enterprise Resilience Report. Utilizing FM’s unique algorithm powered by proprietary data, advanced analytics and nearly 200 years of engineering expertise, this report delivers unmatched insights. It combines climate and operational exposures, including human element, fire protection, and boiler and machinery recommendations, to give clients a complete view of their property risk landscape, supporting smarter, longer-term resilience decisions.