Commercial property insurer FM has announced a major expansion of its industry-first resilience credit program, doubling its size from 5% to 10% of eligible in-force premiums and broadening its scope to include operational resilience.
The enhanced initiative, representing an estimated $825 million in credits, is designed to help FM clients invest further in loss prevention and business continuity measures.
Originally launched in 2022, the FM resilience credit broke new ground in commercial property insurance by directly supporting clients in financing risk mitigation improvements, particularly those related to climate resilience. The credit helped clients implement recommendations addressing natural hazards such as wind, flood, and wildfire, collectively reducing potential economic losses by an estimated $80 billion.
The expanded credit now extends beyond climate-related risks to cover human element, fire protection, and boiler and machinery exposures, areas FM’s data analytics identify as key drivers of preventable loss. By integrating these components, FM aims to provide a more comprehensive view of risk and to promote stronger operational resilience across industries.
The enhanced credit will apply as a 10% premium offset for eligible FM policies renewing between Jan. 1 and Dec. 31, 2026.
According to FM, the expanded program could yield an additional US$35 billion in annual loss expectancy reductions as clients adopt targeted capital improvements guided by FM’s engineering insights and proprietary risk models. The move reinforces the insurer’s broader strategy to tie underwriting strength to client risk prevention and operational efficiency.
The initiative underscores a growing trend in commercial property insurance toward proactive loss prevention and data-driven resilience strategies. Insurers are increasingly using credits and premium offsets as incentives for policyholders to invest in risk mitigation, aligning with broader climate adaptation and ESG objectives.
To complement the credit expansion, FM is introducing the Enterprise Resilience Report, which consolidates climate and operational risk insights into a single analysis. The report leverages nearly two centuries of engineering expertise and proprietary algorithms to give clients a clearer picture of their full risk landscape, guiding more strategic long-term investment in resilience.
FM is also launching FM Solutions, a new business unit that unites the company’s property valuation, business risk, cyber risk, and sustainability consulting capabilities. The new division, led by Kashia Moua, will streamline client access to FM’s suite of non-traditional services, strengthening the insurer’s role as a risk management partner rather than a policy provider alone.
The enhanced resilience credit marks another step in FM’s continued effort to redefine the insurer-client relationship around prevention and partnership. In an increasingly volatile property insurance market, the company’s integrated approach combining financial incentives, engineering expertise, and analytics positions FM at the forefront of the shift from loss recovery to loss avoidance.
