To reduce competition and costs, in 1998 the CEOs announced their intent to merge the three companies to create FM Global. The three companies were sharing the resources of an inspection group, yet were competing with one another for customers. The three separate organizations found it difficult to deliver competitively priced, value-added engineering services in a marketplace full of increasing competition and a demand for more challenging property protection programs. By 1987, 42 separate mutual insurance companies had become three: Allendale Mutual Insurance Company, Johnston, R.I., USA Arkwright-Boston Manufacturers Mutual Insurance Company, Waltham, Mass., USA and Protection Mutual Insurance Company, Park Ridge, Ill., USA. These mutuals began branching out into other industries, such as shoe and rubber manufacturers, foundries and light, gas and power companies, while still maintaining their preference for low-risk properties.During the next 75 to 80 years, the need for more comprehensive policyholder coverage grew, forcing a series of consolidations among the FM companies. Contents.History During the depression of 1835, a prominent textile mill owner, attempted to reduce the insurance premium on his Rhode Island, USA, mill by making property improvements that he believed would minimize the damage in case of fire. FM Global engineering personnel regularly visit insured locations to evaluate hazards and recommend improvements to their property or work practices to reduce physical and financial risks if a loss occurs. This business approach is centered on the belief that property losses can be prevented or mitigated. FM Global has been named the 'Best Property Insurer in the World” by Euromoney Magazine.The company employs a non-traditional business model whereby risk and premiums are determined by engineering analysis as opposed to historically based calculations. 'FM Global' is the communicative name of the company, whereas the legal name is 'Factory Mutual Insurance Company'. The FM GlobalFM Global is an American company based in, with offices worldwide, that specializes in loss prevention services primarily to large corporations throughout the world in the Highly Protected Risk (HPR) property insurance market sector.
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