#United States #FM Insurance #Membership Credit #Property Risk #Johnston, Rhode Island

FM Introduces Enhanced Membership Credit for 2025-2026

In a strategic move aimed at bolstering the financial well-being of its client-owners, FM Insurance has announced an enhanced membership credit of up to US$1 billion for eligible mutual policyholders. This significant development reflects FM's robust financial performance and its commitment to fostering meaningful partnerships with its clients.

The increased membership credit program comes as FM recognizes the collaborative efforts made alongside its clients. In 2024 alone, FM worked closely with policyholders to execute over 46,000 recommended risk improvements, which led to a staggering estimated US$1 trillion reduction in loss exposure related to property risks. The credit is structured to be accessible for all eligible mutual policyholders whose renewal or anniversary dates fall within the timeframe from June 30, 2025, to June 29, 2026.

According to FM's chairman and CEO, Malcolm Roberts, the membership credit exemplifies the strong, enduring partnerships forged with clients. He emphasized, "This framework showcases our joint commitment to risk mitigation and mutual growth, ensuring that we are proactively addressing potential losses before they materialize."

Enhancements to the Membership Credit Structure

This year’s enhancements are notable, with FM introducing a 10-year tier to the existing membership credit structure. Eligibility for the highest credit percentage has been adjusted, now recognizing policyholders with a 15-year tenure instead of 20 years. Specifically, mutual policyholders will benefit from the following credit percentages based on their duration of membership:

• - 5% Credit: Less than five consecutive years.
• - 10% Credit: At least five but fewer than ten consecutive years.
• - 12.5% Credit: At least ten but fewer than fifteen consecutive years.
• - 15% Credit: At least fifteen consecutive years.

Roberts further remarked on the value of these enhancements, noting that they serve as a stronger acknowledgment of clients’ dedication to loss prevention. FM’s mutual company structure has played a pivotal role in fostering these deep connections, ensuring that the company remains aligned with its clients' core values and priorities.

Record Returns on Membership Credits

The introduction of this credit signifies a vital addition to FM's ongoing dedication to its policyholders. Since the inception of the membership credit program, the company has disbursed an impressive total exceeding US$3.8 billion over the last four years and an astounding US$7.5 billion since 2001. These numbers highlight FM's unwavering efforts to promote a resilient future for its clients, while simultaneously advocating for preventative measures against property loss.

FM stands out in the insurance industry, having established itself nearly two centuries ago as a leader in mutual insurance. Its focus on capital management, scientific research, and engineering expertise is dedicated solely to property risk management, aligning with the aspirations of its policyholders. The owners, comprising many of the world’s major corporations, including one in four Fortune 500 companies, collaborate closely with FM to navigate the complexities of property risks effectively. This partnership ensures that they can make well-informed risk management decisions while integrating proactive loss prevention strategies alongside insurance protection.

Conclusion

FM Insurance's announcement regarding the enhanced membership credit encapsulates the company's commitment to supporting its mutual policyholders. By prioritizing loss prevention and recognizing long-standing relationships, FM continues to lead as a partner in resilience and innovation within the commercial property insurance landscape. The forward-thinking adjustments to the credit system reflect FM's dedication to its policyholders' needs while fostering a united approach to risk management. As they move into the new credit year, FM is poised to strengthen its partnerships and continue safeguarding the interests of its client-owners.