FM expands policyholder climate credit to operational resilience

FM said Thursday its policyholders collectively will receive approximately $825 million as a credit to support their investments in climate-related and operational risk improvements.

The resilience credit will be applied as a 10% premium offset against eligible FM policies that renew in 2026, up from 5% in 2025, the Johnston, Rhode Island-based insurer said.

FM said the resilience credit, previously used only for climate mitigation, has been expanded to cover more operational areas, providing a more comprehensive way to prevent losses and build resilience.

The insurer’s advanced analytics now identify human factors, fire protection and boiler and machinery recommendations that are most likely to prevent losses, enabling more targeted capital investments.

Since its launch in 2022, the resilience credit has helped organizations implement recommendations to protect against wind, flood and wildfire that reduced the potential economic impact of those perils by over $30 billion.

The improved resilience credit could lead to an estimated $35 billion in additional annual loss expectancy reductions, FM said.The insurer has also introduced an enterprise resilience report that combines climate and operational exposures to give policyholders a comprehensive view of their property risk landscape.

FM also announced FM Solutions, a new business unit providing clients access to various services, led by Chief Sustainability Officer Kashia Moua.

The unit combines FM’s property valuation services and consulting practices in business risk, cyber risk and sustainability to deliver a more efficient service for policyholders, FM said.