US-based mutual insurer, FM Global, has announced it will allocate nearly $US300 million ($421.48 million) to provide clients – including those in Australia and New Zealand – with “resilience credits” to incentivise increased investment in climate resilience solutions.

The insurer says the “first of its kind” credit aims to reduce climate-related events costs by up to $US120 billion ($168.59 billion) for its customers.

FM Global President and CEO Malcolm Roberts says rising business disruption attributed to climate events has required insurance companies to increase their focus on proactive measures.

“The resilience credit is a potential game-changer for our clients, many of which are key contributors to the economy and society,” Mr Roberts said.

Mr Roberts says the investment is part of FM Global’s new set of climate protection projects as it increases its emphasis on assisting clients with climate risk assessment.

The credit is expected to come into effect in the upcoming months at a 5% premium offset to FM Global policies.