FM Global said on Monday that its policyholders will collectively receive up to $300 million as a credit to help them invest in climate mitigation.
The credit will be applied as a 5% premium offset against FM Global property policies with renewals or anniversaries between Oct. 1 of this year and Sept. 30, 2023, the Johnston, Rhode Island-based mutual insurer said in a statement.
The amount will be calculated based on qualified current premium applicable 90 days prior to the renewal or anniversary date of the current policy, FM Global said.
The credit has the potential to help organizations reduce total loss expectations related to wind, flood and wildfire exposure by more than $120 billion, according to FM Global data.
“With increasing business disruption due to climate risk and companies increasingly focusing on ESG strategies, the Resilience Credit is a potential game-changer for our customers, many of whom are important contributors to the economy and society,” Malcolm Roberts, president and CEO, said in the statement.
FM Global also plans to introduce a suite of climate resilience solutions later this year designed to help its policyholders assess their exposures and prioritize risk improvement investments.