FM will issue $1B in membership credits for renewals

FM said Monday it will issue $1 billion in membership credits to eligible policyholders that renew.

The Johnston, Rhode Island-based insurer said the membership credit will be based on a policyholder’s premium and the length of time they have been with FM.

It will apply to policy renewals beginning June 30, 2025, through June 29, 2026.

Policyholders with FM for less than five years will be eligible for a 5% credit on renewal, those that have been with the insurer for five to less than 10 years will be eligible for a 10% credit, those with 10 to 15 years will be eligible for a 12.5% credit.

In addition, FM has changed eligibility for its highest membership credit from a 20-year to 15-year tenure. Those with more than 15 years will be eligible for a 15% credit.

Since the premium credit program began in 2001, the insurer has paid out more than $7.5 billion in credits, including a $1.4 billion membership credit announced last year for renewals between June 30, 2024, through June 29 this year.

Credits are applied as an offset against premium at a policyholder’s renewal or anniversary date.