FM engineering approach avoided $1 trillion of potential losses in 2024, says Roberts

By James Thaler

June 29 - (The Insurer) - FM Global's engineering-focused approach helped clients eliminate $1 trillion in potential losses last year, its CEO Malcolm Roberts told The Insurer, enabling the company to announce a $1 billion membership credit launched in May.

The mutual insurance company has returned $3.8 billion to its policyholder-owners over the past three and a half years, Roberts said, adding: "That's 82% of our profits going back to our owners."

"Our clients do fabulous things, obviously (they’re) very focused on the engineering (component). They completed almost 50,000 recommendations and eliminated $1 trillion of potential losses," Roberts said at last month's RIMS Riskworld event in Chicago.

Roberts said this approach, and FM Global's mutual structure, where policyholders are also owners, creates a virtuous cycle.

"When climate stuff comes, hurricanes come, our clients always outperform, and when they outperform, our results outperform, and when we outperform, we can give the money back, and if they put a bit of that back into their facilities, that circle continues," he said.

"And it's a pretty powerful thing as a business model. It's tough to compete against, and tough to break."