FM doubles resilience credit to USD $825m, broadens support scope
Commercial property insurer FM has expanded its resilience credit programme, increasing available support to USD $825 million and broadening its scope to include operational resilience as well as climate-related risks. The credit, now doubled from 5% to 10% of eligible in-force premium, is designed to help clients invest in measures that reduce potential losses and enhance business continuity.
Programmeme expansion
The enhanced resilience credit follows earlier efforts to incentivise climate-related risk improvements. Since the programme's introduction in 2022, FM clients have used the scheme to address risks from natural hazards such as wind, flood and wildfire. FM estimates these improvements could lead to a reduction in economic impact of nearly USD $80 billion. The latest update allows clients to use their credits for a wider array of operational resilience efforts.
FM employs advanced analytics to identify areas with the greatest loss prevention potential across human element, fire protection, and boiler and machinery operations. This enables clients to target capital expenditure where it may have the most tangible benefit to resilience and operational safety.
Enhanced tools
FM has also introduced the Enterprise Resilience Report, drawing from proprietary data, analytics, and engineering experience. This tool provides clients with a detailed perspective on their property risk profiles, integrating both climate and operational exposures. The report is intended to inform clients' long-term decision-making concerning resilience investments.
The resilience credit is applied as a 10% offset against eligible FM policy renewals between 1 January 2026 and 31 December 2026. By making the credit available on a broader range of expenditures, FM expects it could contribute to an additional USD $35 billion in annual loss expectancy reductions.
Client response
"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. With the enhanced resilience credit, we are providing clients with even more support and insights to make crucial investments in protection and prevention measures," said Malcolm Roberts, Chairman and Chief Executive Officer, FM.
Roberts said: "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, said: "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."
Business unit launch
FM is launching FM Solutions, a new unit that brings together its property valuation services and consulting expertise in business risk, cyber risk and sustainability. Under the leadership of Kashia Moua, this division aims to provide more streamlined access to FM's services, concentrating specialist teams to improve client service and efficiency.
FM Solutions is the insurer's response to demand for broader resilience solutions beyond standard insurance cover, reflecting a move towards integrated risk management support combining analytics, engineering guidance and tailored consultancy.
In addition to the expanded credit and the new business unit, FM continues to provide digital resources such as the FM Climate Resilience Tracker, the FM Resilience Index and the NatHaz Toolkit to help clients proactively prepare for disruptive events.
