FM Global

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FM Global Target Market

FM Global is a global insurance conglomerate offering a range of services including property, cargo, corporate, and emergency response insurance services. FM Global also provides an approval rating system for machinery, electrical systems and other industrial equipment to mitigate investment risk. FM Global's business insurance subsidiary AFM has a client retention rate of 75%. Working in over 149 countries, FM Global has a presence in most countries around the world.

Key Findings:

Dell: Software and Technology

  • Dell has been a client of FM global for 30 years.
  • Dell's estimated revenue is $90.6 billion in 2018.
  • At $90.6 billion in revenue, Dell's TCOR expenditure is approximately 900 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For $90.6 billion in revenue, that's approximately $900 million in TCOR expenditure).
  • An insurer of Dell, among other technology companies since the beginning of tech in the 1980s, FM Global is well poised to offer services to the growing software and technology industry.

Husqvarna Group: Manufacturing Industrial Equipment

  • The Husqvarna Group is a Swedish manufacturing company established over 300 years ago.
  • A long time manufacturer of industrial equipment (sewing machines in the 1900s), Husqvarna now focuses on chainsaws, watering products, diamond cutting products and chainsaws among other products.
  • Husvarna's estimated revenue was $41.1 billion SEK ($4.23 billion USD) in 2018.
  • At $4.23 billion in revenue, Husqvarna's TCOR expenditure is approximately $38 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For $4.23 billion in revenue, that's approximately $38 million in TCOR expenditure).
  • FM Global's focus on equipment certification and their long experience working with manufacturing clients, makes equipment manufacturing a good area of expansion for FM Global.

Xylem: Environmental Engineering

  • Xylem is a Fortune 1000 company with a focus on providing technology-based solutions to water scarcity.
  • Xylem has been a client of FM Global for 7 years.
  • Xylem's estimated revenue for 2018 is $5.2 billion.
  • At $5.2 billion in revenue, Xylem's TCOR expenditure is approximately $46 million annually ($9.95 TCOR expenditure to $1000 of revenue = .009 of revenue spent on TCOR. For a $5.2 billion in revenue, that's approximately $46 million in TCOR expenditure).

Research Strategy

For this research, we defined the "top" types of target businesses for FM Global as the categories of businesses that currently spend the most on FM Global's business insurance products. Since the specific industry breakdown of FM Global's top clients is not available, we looked at the industry affiliations of some of FM Global's top client relationships, many that have lasted for decades.

To estimate the expenditure of key FM Global's top clients on their insurance services, we calculated the estimated TCOR (total cost of risk) expenditure for each of these companies. To calculate the TCOR expenditure, we took the 2018 average business ratio of $9.95 TCOR expenditure to $1,000 of revenue. Despite the fact that insurance premiums are only one component of the TCOR calculation for each company, the number gives a good ballpark estimate of the amount that FM Global's top clients are spending on their services.
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Global B2B Business Insurance Market Size

The research team was not able to reliably determine the global market size for business insurance. Still, the team obtained global market sizes for 2 of the 3 main business insurance lines and provided them as helpful findings, along with an explanation of why the market size could not be determined.



To start the search, the team has directly searched for preexisting information on global business insurance market size. During the course of search, we determined business insurance equals commercial insurance. Because of that, we decided to focus on the term "commercial insurance". In an attempt to find preexisting data on global commercial insurance market size, we have searched various insurance industry publications, such as Insurance Journal, Tech Insurance, Insurance Information Institute. This strategy was successful in determining the 2017 global commercial insurance market size, however this was focused on the property casualty services, which excludes some other specific insurance lines, such as liability insurance and workers' compensation insurance. After determining the main types of commercial insurance, we have focused our search to locate market sizes for each individual commercial insurance type (workers' compensation insurance, liability insurance, property and casualty insurance) in order to add the market sizes together to get the global commercial business market size. Although the market size for liability insurance was readily available, market size for workers' compensation insurance focused on the US rather than on the global level, which is why this strategy has failed.

Because the only data point required for triangulating the market size (workers' compensation insurance market size) was missing, we have decided to search commercial insurance market reports to find segmentation charts of the market by service type. To find this, we have searched market reports on sites such as Risk&Insurance and SPGlobal. The strategy was unsuccessful because we were not able to locate the required percentage. Available information surrounded irrelevant things such as workers' compensation insurance pricing rates, instead of the amount of commercial insurance market it takes up.

We have then attempted to locate the amount of the global insurance market US takes up, in order to use this information to calculate the workers' compensation insurance global market size, since we've already obtained the US size and this was the only missing data point required to calculate the market size. We have searched insurance market reports on industry-specific sites such as National Association of Insurance Commissioners, PwC and others. Unfortunately, the information we were able to obtain was not specific, that is, stated that the US is the biggest market in the insurance industry, but didn't provide the exact percentage. Because of this, we were not able to reliably determine the size of the workers' compensation insurance, which we needed to answer the query.

Following this, we decided to take a broader approach. We searched insurance industry reports, hoping to find segmentations of the insurance industry by service lines to find the percentage of the market commercial insurance takes up, in order to calculate the commercial business market size using the insurance industry market size. To find segmentation charts, we have searched sources like Deloitte and OECD, however no relevant information was uncovered. Although reports regarding the commercial insurance industry in specific regions, such as Canada, was available, there was no information on percentage of the global insurance industry commercial insurance takes up.

As a last resort, in order to provide an estimate of the global commercial insurance market size, we decided to examine annual reports of 25 of the biggest insurance companies worldwide and locate their business insurance revenues, in order to add them together. Companies we looked into include Allianz SE, Assicurazioni Generali S.p.A., State Farm Group, among others. This strategy has ultimately also failed because, after examining each of the insurance companies' financial reports, it was evident that the majority haven't provided information on revenue specifically pertaining to their business insurance product lines. Instead, general revenue information was available, which encompassed various different insurance types, including personal insurance.
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FM Global and Competitors Market Share, Part 1

Based on the 'Direct Premiums Written', American International Group held a 4% market share in the US in the 'Commercial Lines Insurance' in 2018 and a 3.9% US market share in the 'Life/Annuities Insurance'. Below is a deep dive into our helpful findings, as well as our research strategy to explain why the requested information could not be obtained.


  • AIG is an international insurance company that serves commercial, institutional, and individual customers, and it provides property-casualty insurance, life insurance, and retirement services.
  • The company's primary business lines include Commercial Insurance, Consumer Insurance, and Corporate and Other Category, and it offers products and services that "help businesses and individuals protect their assets, manage risks and provide for retirement security."
  • The company's Commercial/Business Insurance provides insurance products and services, and it operates in three sub-segments, namely Property Casualty, Mortgage Guaranty, and Institutional Markets.
  • In 2018, the segment that contributed the most significant revenue for the company was the 'General Insurance' products for individuals and businesses, which accounted for 67% of the total revenue, while 'Life & Retirement' products formed 31% of the revenues.
  • The company reported $47.4 billion in total revenues in 2018, but there is no bifurcation of its revenues between business vs. individuals.
  • AIG is one of the largest insurance companies in the world by shareholders’ equity and caters to over 87% of companies in the Fortune Global 500 and 81% of the Forbes 2000 companies.
  • Based on the 'Direct Premiums Written' the company held a 4% market share in the US in the 'Commercial Lines Insurance' in 2018 and a 3.9% US market share in the 'Life/Annuities Insurance'.
  • As per data from CSI Market, the company had the following market shares in the different insurance segments in the US:
    • Life Insurance: 1.14%
    • Financial Services: 1.64%
    • Mortgage Guaranty Insurance: 5.24%
    • Property Casualty Insurance: 3.13%
    • Personal Insurance: 3.79%
    • Retirement Insurance: 5.5%
    • General Insurance: 4.15%


  • Factory Mutual Global is an American mutual insurance company that operates globally and deals with loss prevention services 'Highly Protected Risk (HPR)' property insurance market sector.
  • The uses a modern business model whereby engineering analysis, as opposed to actuarial calculations, is used to determine risks and premiums.
  • The company boasts of a global geographical footprint with customers in over 100 countries and 5,500 employees worldwide.
  • As of 2016, the insurance company had $5.3 billion of in-force premium and $11.9 billion in policyholders' surplus.
  • The various B2B insurance products and services offered by the company include Cargo Insurance, Boiler and Machinery Insurance and Reinsurance, Business Interruption Coverage, The FM Global Advantage All-Risk Policy, and Cyber Resilience Risk Solutions.
  • The company's revenue increased from $4,467.7 million in 2017 to $4,487.2 million in 2018. Since the company derives all of its revenues from business organizations, these revenues can be primarily considered as B2B insurance revenues of the company.


To determine the share of the global insurance market held by FM Global and American International Group, our first strategy was to scour through the respective company's website and its various sections especially the press releases along with various company filings such as annual reports, quarterly statements, trading reports, and company presentations to hunt for any information around the global market share in the B2B insurance market. These are primary sources where any company discusses or discloses its revenues and market share information, and hence, we visited the same prima facie. We also made it a point to go through the earning call's transcript of the companies because the same contains detailed commentary by the company management around the company's market share position and also has questions and answers from the analyst community around these areas. However, no pertinent data around market share could be located for any of the companies. While we were able to establish the B2B revenues for FM Global through its annual report, the same did not have any market share information. Also, AIG did provide revenues for its various business segments, but it did not break them out into business vs. individual revenues nor did provide any B2B insurance market share information. All the other data found was with respect to the various product offerings by the companies, their overall financial performance, and the expected growth. Hence, this strategy did not materialize.
Next, we consulted third party broker reports from GS, RBS, JPM, Moody's, Fitch, Seeking Alpha, etc. on these companies as well on the commercial insurance industry as a whole. Such reports, especially the initiating coverage reports normally contain information about the revenue segmentation and market share for the respective company as brokers use the same to derive 'sum of the parts' valuation for the company that they track, and hence the idea was to see if any of the brokers have specifically broken out the respective company's sales into B2B insurance segment and computed the global market share therein. However, all the reports had general Buy or Sell recommendations or were centered around the detailed financial analysis of the results with no data on the market share specifically available. We also scoured through the industry level reports to check if any of them have mentioned the market share of some of the top players in the commercial insurance industry and if these companies feature in the list but again only the market size of certain sub-segments could be found with no market share information for any of the players.
We then searched through credible databases such as CIS Markets, NAIC,, Insurance GlobalData, etc; media articles in Forbes, Business Insider, Business Wire, Bloomberg, Reuters etc; news items apropos of the respective companies in various company databases such as Owler, Crunchbase, Hoovers, Craft.Io etc; and various blogs and magazines where CEO interviews are published such as 'The CEO Magazine', 'Performance Magazine', '' etc. to check if the company management has provided any revenue or market share details in any of the interviews. All these are potential sources where such market information is quoted especially from paid sources or is analyzed by various sector experts, and thus we decided to leverage this research path. While we were able to locate the US market share details for AIG for various insurance segments, we could not find any information relevant to the global B2B insurance segment market share.
Our fourth strategy was to try to triangulate the information. The idea was to triangulate the information using global B2B insurance revenues of the individual companies (say X) along with the global revenues of the B2B insurance market (say Y). The market share would then have computed to (X/Y*100). The latter value (Y) as per RC was supposed to be used from the dependent request. This strategy did not materialize because no information on the global revenues of the B2B insurance market could be garnered from the dependent request. Also, while we were able to ascertain the B2B insurance revenues for FM Global, the same could not be segregated for AIG. AIG primarily reports the business as well as individual consumer revenues combined for its various operating segments and does not segregate the same in its filings. Hence, due to these limitations, the triangulation strategy did not work out.

Lastly, we tried to establish alternate data points to triangulate the information. For this, we decided to hunt for any B2B insurance revenues or market share information from the past five years from either company. The idea was to use the same along with the overall revenue CAGR for the respective companies to extrapolate their current B2B insurance revenues or market share. The key assumption here being that the B2B segment would grow in line with the overall revenue growth of the companies. However, we could not locate any such historic information apropos of either of the companies. Again all of the information found was around the overall revenues and premium growth for the individual companies.

In conclusion, no information apropos of the global B2B insurance market share of AIG and FM Global could be found in the public domain or could be triangulated. All of the information found catered around the overall business lines of the companies, their overall revenues, the various kind of commercial customers served by them, and the various awards and recognitions won by the companies. The primary reason for the data to be missing can be its niche nature and the fact that the individual companies such as AIG have not divulged the granular revenue details in their filings in terms of business vs. individual customer revenues due to which their B2B insurance revenues could not be established. FM Global primarily operates in business insurance only, and hence all its revenues can be considered representative of B2B insurance but the global market share triangulation of the same was not possible because the global market size of the B2B insurance market could not be established in the dependent request and hence the primary information required to compute the global market size for the companies was itself absent in the first place.
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FM Global and Competitors Market Share, Part 2

Travelers Insurance has had $17,079 billion in Business Insurance revenues in 2018, which is more than a half of its overall revenues. Below, helpful findings were presented along with an outline of the research strategies conducted in an attempt to obtain the requested information.

Helpful findings

Liberty Mutual Group (LMG)

  • LMG offers business insurance businesses of all sizes, ranging from 2 employees to over 200,000 through a flexible range of coverages, including traditional lines to specialty lines.
  • The various types of insurance coverages offered by LMG for small businesses include Business Owner’s Policy (BOP) and Packages, Commercial Auto Insurance, Equipment Breakdown Insurance, General Liability Insurance, Group Programs, Inland Marine Insurance, Property Insurance, Specialty Programs, Umbrella Insurance and Workers Compensation Insurance.
  • The various industries served by LMG through its business insurance products include: Agriculture/Farm, Building Maintenance, Construction, Education, Energy, Financial Services, Food and Beverage Manufacturers, Healthcare, Hospitality, Manufacturing, Public Entities, Printing and Publishing, Private Equity, Real Estate, Religious Organizations, Restaurants, Retail, Transportation and Wholesale.
  • Based on the 'Direct Premiums Written', LMG held a 5.1% market share in US in the 'Property/Casualty Insurance' in 2018, a 5.0% share in 'Commercial Lines Insurance' and a 6.7% market share in 'Homeowners Insurance'

Travelers Insurance

  • Various business insurance offerings by Travelers Insurance include 'Commercial Auto & Trucking Insurance', 'Cyber Insurance', 'General Liability Insurance', 'Property Insurance', 'Small Business Owner's Policy', 'Surety Bonds' and 'Workers Compensation'.
  • Various industries served by Travelers Insurance through its business insurance products include Construction, Energy & Renewable, Financial Institutions, Healthcare, Manufacturing, Real Estate, Technology and Transportation.
  • Based on the 'Direct Premiums Written', Travelers Insurance held a 3.9% market share in the US in the 'Property/Casualty Insurance' in 2018; a 5.5% share in 'Commercial Lines Insurance'; a 3.8% market share in 'Homeowners Insurance'; a 1.9% share in 'Private Passenger Auto Insurance'; a6.3% market share in 'Commercial Auto Insurance' and a 7.6% US market share in the 'Workers' Compensation Insurance'.

Zurich Insurance Group

  • Based on the 'Direct Premiums Written', the Company held a 3.4% market share in US in the 'Commercial Auto Insurance' in 2018; 3.8% share in 'Commercial Lines Insurance' and a 5.1% US market share in the 'Workers' Compensation Insurance'.
  • The Company reported $51.6 billion in 2018 revenues and $13.02 billion in revenues from the 'Property & Casualty' segment which includes the commercial insurance as well. The Company has, however, not bifurcated its personal vs business revenues.

Research Strategy:

The research team was unable to determine the global market share for companies Liberty Mutual Group, Travelers Insurance and Zurich Insurance. We've deployed the following strategies in an attempt to answer the query.

First, we've scoured through each of the company websites, press releases and operational reports such as annual reports, hoping to find information on the global market share of the companies specifically pertaining to their Business Insurance services segment. We also went through the companies' Earning Calls Transcripts to locate relevant statements from the company leadership, however, no pertinent data surrounding market share could be located for any of the companies. Although this way we were able to determine Business Insurance segment revenue for company Travelers Insurance, this couldn't be used for triangulation with the pre-identified market size because the market size hasn't been determined. Because no relevant information was obtained, we've abandoned this strategy.
Our second strategy was to consult third party broker reports from GS, RBS, JPM, Moody's, Fitch, Seeking Alpha, among others, led by the fact that these sources usually report on revenue segmentations and market shares within specific industries. However, no data on market share of companies in the B2B Insurance industry was found, although detailed financial analyses of the companies under investigation existed. Market sizes of certain sub-segments could be found pertaining to these companies, however no market share information within the Business Insurance industry was available.
Next, we consulted credible databases such as CIS Markets, NAIC, OECD, Insurance GlobalData, industry reports on sites such as Forbes, Business Insider, Business Wire, Bloomberg, company profiles on company databases such as Clutch and Crunchbase as well as various sources where interviews with company CEOs are published, such as blogs and magazines (our goal was to find relevant statements directly from the company leadership). This way, general US market shares of these companies were located, however again, no information pertained to the global B2B insurance market.
As a fourth strategy, we've attempted to triangulate this information. We attempted to locate the following data points: [1] the global revenues of the B2B insurance market and [2] B2B insurance revenues of the companies under investigation. Because the global revenues of the B2B insurance market were not identified in previous research, we were not able to successfully move forward with the triangulation. Besides, B2B insurance revenues for companies Libery Mutual and Zurich Insurance were not available in the public domain, as explained in the first strategy. Due to these limitations, we were unable to move forward with the triangulation attempt and with the research itself.

As a last resort, we have attempted to locate outdated information on the data points identified in the previous strategy, along with projected relevant CAGR values in order to estimate the current values to attempt to perform the triangulation. In order to maintain reliability of the research, we have limited our search to the past five years, however, even after searching for much older information, no relevant information could be obtained aside from overall company revenues and projected premium growth for the companies' general business lines.
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FM Global Competitors

Liberty Mutual provides insurances services from startups to family-owned businesses and Fortune 500 corporations of any given size just like FM Global but the company offers premium audit.


Below we have provided details on how the listed company's compete against FM Global

American International Group

  • American International Group offers a wide range of products and services, including traditional insurance, highly specialized solutions, and excess and surplus lines insurance to assist businesses to subdue emerging risks.
  • The company's clients range from large, international, and mid-sized companies to small businesses, entrepreneurs, and non-profits worldwide just like its competitor but they focused on providing award-winning protection against cyber threats and attacks.

Liberty Mutual Group

  • Liberty Mutual provides insurances services from startups to family-owned businesses and Fortune 500 corporations of any given size just like FM Global but the company offers premium audit.
  • The company serves clients in manufacturing, hospitality, retail, or any other industry just like FM Global, but they focus more on creating a safe work environment, and in the event of a claim, help you get back to business.
  • Liberty Mutual Insurance has risk control specialists available via phone, online, or in-person to advise their clients on the right solutions for business.

Travelers Insurance

  • Travelers provide a wide array of business insurance options, intended to identify and reduce risks.
  • Apart from managing claim costs, the company enables its clients to prepare for risk and recuperate quickly after an event and also managing the total cost of risk.
  • According to Travelers, they offer "small business policyholders online access to pay your bill, get a copy of your policy, request certificates and more."

Zurich Insurance Group

  • Zurich has customers in global and local markets.
  • The company's customers include individuals, small businesses, and mid-sized and large companies, as well as multinational corporations.
  • Zurich is focused on customer relationship model, they pay 99% of their customers' claims.
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Business Insurance Trends

Artificial Intelligence and Augmented reality are two of the emerging trends in the business insurance industry. The details are outlined below.


  • The AI trend involves a transformative experience of simulating human intelligence within the business insurance scene.
  • An example of this is facial recognition which is conducted in the underwriting process. The application will utilize both facial recognition technology and gamification processes to predict life span and thus calculate premiums.
  • By 2030, it is believed that AI will be a part of every decision that business insurance makes. At this time however, we have employees utilizing computers and other digital devices which is now sufficient before that process will be streamlined.
  • AI is already becoming advanced in various industries and its expected use will bring greater data and analytical processes to the business insurance scene.
  • The use of AI will help to minimize fraud. While human error is natural and details sometimes overlooked by an employee, AI technology will be able to use behavioral economics in minimizing fraud occurrence.
  • Robots will use AI in both back and front offices to make claims management a much faster process and will provide more proactive customer service.
  • Already, small-scale automated systems create more accuracy in the underwriting process and lead to higher benefits and market competitiveness.
  • One company leading the way into AI technology includes Liberty Mutual who plans to transform the insurance industry with AI tools and technology.
  • Another company aiming for this is AIG, which intends to foster growth through Predictive Modeling, Computer Vision and Time series forecasting.


  • This trend has existed in the gaming world for some time, and recently, insurance companies have been exploring the idea of implementing the simulated virtual reality platform into their business practices.
  • AR technology is one of the leading tools in the gaming world and now insurance companies are looking for ways to stimulate customer interest with virtual reality.
  • Some of the most prominent insurance companies are getting ready to boost customer experience and sales by enhancing their outreach methods. AR is one such way to do this.
  • AR technology will be able to reduce the physical distance when interacting with consumers on products and services. This is because AR is able to provide visual endorsements at any time and place for customer accessibility.
  • AR will also provide enhanced visual aids related to processing claims and other documentation. Insurance holders will be able to collaborate through AR with an insurance agent to discuss pertinent needs relating to insurance coverage.
  • An insurance adjuster will also be able to use augmented reality tools to review claims adjustment needs.
  • AR tools may be able to provide accurate assessments using immediate validation tools.
  • Claims processing may also be exponentially faster using AR, as it works at a greater speed than human hands.
  • Fraud reduction is another benefit as AR is likely to provide live video streaming of events.
  • Liberty Mutual is one such company veering into the AR technology industry. The company has made plans to use AR reality for training and to give workers 3-D views of construction plans and project layouts.


The first step taken by the Research team was to look at the term business insurance and what it entails. This led us to look at websites such as Risk and Insurance as well as One Inc Systems. We were able to ascertain what business insurance entails and what services the companies offer.

We found data on emerging trends in the business insurance industry from technology based websites, which provide data on future trends. We ensured that no less than three sources put forward the thought on each trend. We then ensured that major players in the industry we impacted by these trends or have plans to implement them in the future. Secondly, we were able to acquire details on how the trend affects the industry by looking at news articles and business websites. These websites gave details on how the trends will affect sectors which included the business insurance industry.

By researching the websites of business Insurance companies such as AIG and Liberty Mutual, we discovered that these companies are some leaders in these future trends. Though the trends mentioned are not new to some markets, their use in the business insurance sphere are just in development.