As the effects of climate change and the growth of the global economy become more significant, the frequency and magnitude of risk increase in tandem. To combat this, international commercial property insurance carrier FM Global developed a suite of products designed to help facilities managers improve resiliency.
The most exciting of these products is a resiliency credit designed to help reduce vulnerabilities to exposures such as wildfires, freeze, wind, collapse, flood, hail and lightning. The credit, which is 5% of the policy premium, will be applied to FM Global policy renewals and anniversary dates between October 2022 and September 2023. To put this in perspective, the collective credit available to current policy holders is $300 million!
Facilities managers should partner with their risk managers to ensure that the funds are appropriately distributed and applied to projects that improve the resiliency of the property.
Not sure where to apply the funds? A monograph from the American Society for Health Care Engineering, “Roadmap to Resiliency,” as well as its On Demand webinar Building Hospital and Community Resilience in the Face of Climate Change both provide great guidance.
FM Global can also develop account-specific climate risk reports for individual policy holders that provide a customized view of inherent and actionable climate risks. The report uses advanced analytics to develop a prioritized list of recommendations to maximize resilience to climate exposures. The report identifies the perils associated with the account, assigns a loss expectancy based on property and business interruption loss potential, and provides an overall climate risk score.
Need help showcasing all the good work that can be done at your facility? FM Global developed the Climate Reporting Aid, which is a guide that helps disclose acute and chronic climate-related financial risks to stakeholders and the public. The report, which can be referenced when reporting on environmental, social and governance items, also identifies climate-related opportunities and planned actions toward greater climate resilience.
Lastly, FM Global developed the FM Global Resilience Index, which ranks 130 countries and territories for disruptive events that can impact business resilience. The index identifies and quantifies country-specific risks such as politics, seismic, climate, cyber and fire, and evaluates the supply chain. This report can be utilized to enhance hazard vulnerability analysis in emergency management plans.