FM Global clients to receive biggest ever $465m premium credit/reduction
The ‘membership credit’ is the largest the company has ever offered its clients and is a result of the mutual insurer’s continued financial success due, in a large part, to policyholders’ diligent property loss prevention efforts.
The credit received by each client will be based on client tenure, with longer-term clients benefiting the most.
Approximately 1,900 clients qualify for the credit. Following this move, FM Global clients will have benefited from approximately $2.5bn in membership credit since the programme was introduced in 2001.
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“Our favourable loss experience, due to the diligence our clients have shown towards property risk improvement, has made it possible for us to provide another premium credit to eligible policyholders,” said Shivan S Subramaniam, Chairman and Chief Executive Officer at FM Global. “As a mutual company, our policyholders are our owners, so naturally they share in the benefits of taking prudent steps to protect their property and business continuity.”
FM Global clients holding policies consecutively for fewer than five years will be eligible for a 5% credit. Those holding policies for five to 19 consecutive years will be eligible for a 10 % credit and those with policies for 20 consecutive years or more will enjoy a 15% credit.
A more detailed overview of the 2014/2015 membership credit plan, including eligibility, timing and basis for calculations, is available at www.fmglobal.co.uk.
