FM Global is reducing membership premiums by a total of $435 million for customers renewing their policies between June 30, 2013 and June 29, 2014.
The insurer says that this earmark, which is the largest it has ever offered since it introduced the credit program in 2001, is a result of FM Global's financial success due to policyholders' property loss prevention efforts.
"Our clients' commitment to the fundamental belief that the majority of loss is preventable has contributed to FM Global's favorable loss experience, enabling us, once again, to apply a membership credit against renewal or anniversary premium to eligible policyholders," said Shivan S. Subramaniam, chairman and chief executive officer of FM Global.
"This means that, as policyholders of a mutual company, in addition to receiving stable capacity and services on a worldwide basis, they also share in the benefits of their risk improvement efforts."
About 1,900 clients will qualify, with long-term customers, some of whom have been policyholders since the late 1800s, will receive the most benefit.
FM Global members with five years or less of tenure will be eligible for a five percent credit; those with five to 19 years of consecutive partnership may receive a 10 percent credit; and customers with 20 or more years are qualified for a 15 percent credit.
A more detailed overview of the 2013/2014 membership credit plan, including timing and the calculation metrics, is available at www.fmglobal.com.
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