#USA #risk management #Johnston #FM #resilience credit

FM Unveils $855 Million Resilience Credit Program

In a groundbreaking announcement, FM, a prominent commercial property insurer, has revealed its plan to allocate approximately $855 million through a resilience credit initiative aimed at supporting clients who invest in risk reduction efforts. This program marks the second consecutive year that FM has provided this unique financial incentive, which is designed to foster a culture of resilience among its clients by rewarding them for their commitment to loss prevention and operational safety.

A Testament to Client Efforts

Malcolm Roberts, Chairman and Chief Executive Officer of FM, expressed his enthusiasm for the program, stating, “For two years in a row, we’ve been able to provide an enhanced 10% resilience credit—a testament to the work our clients do every day to drive lasting protection.” This statement underscores the belief that investments in risk management pay dividends not just in terms of financial incentives but also in fostering a more resilient operational environment. FM’s mutual ownership structure enables it to extend these benefits directly back to its clients, creating a beneficial cycle of improvement and engagement.

Expanding the Resilience Credit Program

Initially introduced in 2022 with a focus on combating climate-related risks, the resilience credit program has evolved significantly. Notably, in 2025, FM expanded this initiative to encompass operational risks, doubling the credit from 5% to 10%. This expansion reflects FM clients’ effective resilience efforts and the consistent achievement of historically low loss rates, which paved the way for further enhancements in the program.

The resilience credit not only acts as a financial incentive, but it also empowers FM clients to implement crucial risk improvement recommendations. With FM's engineering expertise and advanced data analytics capabilities, eligible clients are better equipped to take proactive measures against potential hazards, aligning risk management efforts with organizational goals.

Implementation of the Credit

As part of this robust resilience credit program, FM will apply the 10% premium offset to eligible policies that renew or celebrate anniversaries between January 1, 2027, and December 31, 2027. This means that clients will receive immediate financial benefits as they continue to invest in practices that mitigate both climate and operational risks.

A Broader Commitment to Resilience

In addition to the resilience credit, FM recently announced a record-setting $1.5 billion membership credit, further amplifying its commitment to enhancing client resilience and operational robustness. Together, these initiatives highlight FM's dedication to reinforcing the idea that most losses are preventable through rigorous risk management and proactive client engagement.

About FM

Established nearly two centuries ago, FM stands as a leading mutual insurance provider, solely focused on property risk management and the resilience of its policyholder-owners. These owners, among the largest organizations worldwide and representing one in every four Fortune 500 companies, collaborate with FM to understand the myriad hazards threatening their business continuity. This partnership allows for informed and cost-effective risk management strategies, blending loss prevention with essential insurance coverage.

For more information and updates from FM, follow them on LinkedIn, Instagram, and Facebook, or catch their insights through the 'Sound Policy' podcast available on Spotify and Apple Podcasts. In an era where resilience and risk management are more vital than ever, FM’s initiatives provide a constructive model for other organizations aiming to bolster their operational resilience.