Insurer FM Global has announced that it will allocate approximately US$300m to clients in the form of a ‘resilience credit’ intended to help them to invest in climate resilience solutions.

The firm says that the credit has the potential to help policyholders reduce total loss expectancies related to wind, flood and wildfire exposure by more than US$120bn which, in turn, can magnify their positive impact on customers, colleagues and communities.

Malcolm Roberts, president and chief executive officer at FM Global, said: “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. This credit is made possible through our mutual ownership structure and risk engineering focus to support their business continuity and climate risk mitigation efforts.”

The credit will be applied as a 5% premium offset against FM Global policies with renewals or anniversaries between 1 October 2022, and 30 September 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.

In addition to the credit, later this year FM Global plans to introduce a new suite of climate resilience solutions that can help clients assess climate risk exposures and prioritise their risk improvement investments. Roberts added: “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.”

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