2014 Government Regulations & Business Summit
Join PBN and our sponsors for our Government Regulations & Business Summit on Th ...
By PBN Staff
JOHNSTON – Clients of FM Global, a commercial property insurer, will receive a collective $435 million in premium reductions as part of a record “membership credit” to policyholders.
The “membership credit” is the largest the company has ever offered its clients and, according to a company release, is a result of the mutual insurer’s “continued financial success due, in large part, to policyholders’ diligent property loss prevention efforts.”
The premium reduction credit is available to roughly 1,900 clients who are slated to renew their policies between June 30, 2013, and June 29, 2014.
According to FM Global, the credit each client will receive will be based on client tenure, meaning longer-term clients will benefit from the credit the most.
Following this record $435 million in credits, FM Global clients will have benefited from roughly $2.1 billion in membership credit since the program’s 2001 inception.
“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,” Shivan S. Subramaniam, chairman and CEO of FM Global, said in prepared remarks.
“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,” added Subramaniam.
FM Global clients who have held policies consecutively for fewer than five years will be eligible for a 5 percent credit, while clients who have had policies between five and 19 consecutive years will be eligible for a 10 percent credit and clients who have held policies for 20 or more consecutive years are eligible for a 15 percent credit.