FM Global unveils $350m resilience credit for climate protection

It is designed to provide added protection against extreme weather events.

FM Global has introduced its second consecutive resilience credit, amounting to approximately $350m, aimed at supporting its clients' investments in climate resilience solutions. 

This credit is designed to provide clients with additional resources to protect against extreme weather events such as windstorms, floods, and wildfires.

Building on the success of its initial resilience credit in 2022, which was worth $300m, the commercial property insurer’s clients accelerated their adoption of natural hazard-related recommendations. 

This proactive approach had the potential to reduce the economic impact of such events by up to $20b. 

ALSO READ: Philippine reinsurance costs to hike from climate change impact

Over the past year, FM Global clients utilized the resilience credit to invest in various risk mitigation initiatives, including flood protection measures like levees, walls, specialised doors, firebreaks to combat wildfires, and reinforced roofs for heavy snowfall.

The resilience credit will be applied as a 5% premium offset for eligible FM Global policies with renewals or anniversaries taking place between 1 October 2023, and 30 September 2024. 

It will be calculated based on the eligible premium in effect 90 days before the renewal or anniversary date of the prior policy.