FM Global reveals second credit support for climate resilience solutions
FM Global reveals second credit support for climate resilience solutions | Insurance Business Canada
Catastrophe & Flood
FM Global reveals second credit support for climate resilience solutions
How much is it compared to 2022’s first round?
Catastrophe & Flood
By
Kenneth Araullo
FM Global has unveiled its second consecutive resilience credit initiative to bolster client investments in climate resilience solutions.
This resilience credit, totalling approximately US$350 million (£280 million), will be distributed among FM Global’s clients, equipping them with additional resources to safeguard against severe weather risks such as wind, flooding, and wildfires.
Building on FM Global’s inaugural resilience credit in 2022, which amounted to US$300 million, clients accelerated the implementation of natural hazard-related recommendations. According to the mutual insurer, this proactive approach potentially reduced the economic impact of such hazards by up to US$20 billion.
Over the past year, FM Global clients utilised the resilience credit to fund various risk mitigation projects, including flood protection measures like levees, walls, and specialised doors, firebreaks to shield against wildfires, and reinforced roofs to withstand heavy snowfall.
“Investing in resilience is more important than ever,” FM Global president and CEO Malcolm Roberts said. “With the increasing frequency of disruptive events around the globe, our clients need the tools and resources to invest in risk mitigation solutions and support business continuity. The resilience credit enables our mutual owners to protect against climate change risk today, invest in tomorrow, and make a positive impact on their customers, colleagues and communities.”
First round successes
United Therapeutics, for instance, utilised the 2022 resilience credit to enhance flood mitigation at its research and development facility in Manchester, New Hampshire. Additional mitigation devices are slated for installation by the end of 2023.
Adient, an automotive seating company based in Plymouth, Michigan, also leveraged the 2022 resilience credit to support critical climate risk mitigation projects. These efforts included the construction and replacement of flood barriers and the reinforcement of roofs and walls to withstand wind.
The resilience credit will be applied as a 5% premium offset on eligible FM Global policies renewing or having anniversaries between October 1, 2023, and September 30, 2024. It is calculated based on the eligible premium in effect 90 days prior to the renewal or anniversary date of the previous policy.
In addition to this new round of credit, FM Global also unveiled its 2023 resilience index earlier this year. The resilience index is the insurer’s annual tool that ranks countries on 15 measures of economic risk, risk quality, and supply chain resilience.
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