FM unveils expanded resilience credit worth up to USD $825 million

FM has announced a major expansion of its resilience credit initiative for commercial property insurance clients, extending the scope of its credit offer and increasing the potential value available to policyholders.

The insurer said its enhanced resilience credit programme now offers up to USD $825 million in credits, with a focus not only on climate-related risk but also new areas of operational resilience.

Resilience credit increase

The company's resilience credit, originally launched in 2022, is now being doubled from 5% to 10% of eligible in-force premiums. This measure enables FM clients to apply a greater offset against forthcoming policy renewals, representing a significant financial incentive to implement recommended protection and prevention measures. FM confirmed that the enhanced credit can be used for operational investments, such as human element risk reduction, fire protection, and improvements in boiler and machinery safety, broadening its former focus on climate risk.

FM's analytics systems will now help clients to identify and prioritise investments that are most likely to prevent property loss. The insurer pointed to the programme's record of supporting client efforts to address natural hazards, claiming it has driven a potential reduction in economic impact approaching USD $80 billion since inception. FM projects the expanded credit could promote an additional USD $35 billion in loss expectancy reductions annually, based on client adoption of new recommendations.

Client partnerships

FM has stated that the enhanced credit is designed to reinforce partnerships with commercial clients and allow more targeted and effective capital spending on risk mitigation.

"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.

The company highlighted policyholder feedback as a key driver for the expansion of the credit. Clients that focus on risk improvements benefit from FM's policyholder credits, which can be applied directly to help finance risk management projects. Brian Merkley, director of risk management and insurance at Orbia, described the mutual relationship as strengthening his company's risk management and overall financial performance.

"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," said Merkley.

Operational risk focus

FM's resilience credit expansion is underpinned by a growing emphasis on operational resilience, extending support to a broader array of threats such as equipment failure and human error. The company noted that its recommendations, driven by advanced modelling and data analysis, aim to drive direct improvements in business continuity planning for clients. The expanded programme will apply to eligible FM policies renewed throughout 2026.

Analytics and reporting

To support the resilience credit programme, FM is launching the Enterprise Resilience Report. This proprietary tool combines climate and operational exposure analytics, providing policyholders with a detailed view of their current risk landscape. FM said the report leverages its data stores and engineering knowledge base accumulated over nearly 200 years, aiming to help clients make more informed long-term investment decisions.

New solutions unit

FM announced the creation of FM Solutions, a new business unit designed to bring together property valuation services and risk-consulting practices in business continuity, cyber security and sustainability.

Led by Kashia Moua, FM Solutions consolidates these offerings to create a more coherent approach to client service, outside of the organisation's insurance policies. The insurer said the aim is to deliver a broader spectrum of resilience services in response to increased client demand.

FM continues to provide a toolkit of analytics and digital reporting tools, including the FM Climate Resilience Tracker, FM Resilience Index and NatHaz Toolkit, all intended to help policyholders identify and prepare for emerging risks in the property sector.