Commercial property insurer FM has announced an expanded membership credit programme valued at US$1 billion, allowing eligible mutual policyholders to receive credit earlier than in previous years.
FM says that the expansion reflects the insurer’s financial position and its mutual ownership model, under which client-owners benefit directly from the company’s performance.
The credit will apply to mutual policyholders whose policies are up for renewal or have an anniversary date between June 30, 2025, and June 29, 2026. The programme aims to return funds to clients who have demonstrated long-term engagement and a commitment to risk improvement.
In 2024, FM said it collaborated with clients to implement over 46,000 recommended risk improvements. These actions are estimated to have reduced exposure to property loss by around US$1 trillion.
As part of this year’s changes, FM has introduced a 10-year tenure tier to its credit structure. The threshold for the highest level of credit has also been adjusted from 20 to 15 years, making more policyholders eligible for the maximum benefit.
FM chairman and chief executive Malcolm Roberts said the revised structure reflects clients’ dedication to loss prevention and underscores the importance of FM’s mutual approach, which he noted fosters stronger relationships and a better understanding of client needs.
The latest announcement brings the total amount returned through the membership credit programme to over US$3.8 billion in the past four years and US$7.5 billion since its inception in 2001.
Under the revised structure, policyholders will receive a 5% credit for fewer than five consecutive years of membership, 10% for at least five but fewer than 10 years, 12.5% for at least 10 but fewer than 15 years, and 15% for at least 15 consecutive years.
Besides its membership credit programme, FM also announced in October its third resilience credit allocation, totalling over US$1 billion since the programme began in 2022.
The recent hurricanes in the southeastern United States have underscored the need for enhanced community resilience and risk awareness. FM noted that its resilience credit programme is intended to help clients address vulnerabilities to natural hazards such as wind, flood, and wildfire.
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