Middle market companies achieve record growth amidst rising risks: Chubb

Chubb, in collaboration with the National Center for the Middle Market (NCMM), has unveiled the latest insights from the 2023 Year-End Middle Market Indicator (MMI), shedding light on the resilience and growth of middle market companies amidst a backdrop of challenges.

The data showcases a robust 12.4% average revenue growth among middle market firms compared to the previous year, with over 83% reporting increased revenues, marking the highest figures since the inception of the MMI in 2012.

Ben Rockwell, Division President of Chubb Middle Market, emphasised the significance of these findings, stating, “Middle market companies are a bellwether for the overall health of the U.S. economy, and our survey shows they are posting record growth.”

While businesses demonstrated preparedness to tackle emerging risks such as inflation, catastrophic incidents, and cybersecurity threats, expansion plans showed a slight pullback compared to earlier reports.

The MMI noted declines in intentions for introducing new products or services, expanding into domestic markets, and adding new facilities.

Inflation emerged as the foremost concern for companies, driven by escalating labor costs and geopolitical tensions impacting trade routes.

The survey revealed that nearly 60% of businesses found managing inflation challenging, with plans to counter it through price increases and enhanced utilisation of AI and data analytics.

Moreover, the severity of weather-related events was underscored, with nearly half of respondents citing it as a top factor in insurance purchasing decisions.

Despite this, the survey highlighted gaps in business continuity planning, as 44% of firms reported only partial or no recovery from operational disruptions.

Cybersecurity concerns also loomed large, with one-third of respondents identifying insufficient protection.

While awareness of cyber risks was high, a significant portion of companies acknowledged the need for enhanced cybersecurity measures and insurance coverage.

Furthermore, middle market companies recognised gaps in insurance coverage, particularly in areas such as multinational operations, environmental liability, and cyber insurance.

A sizable portion expressed the need for additional protection beyond their current coverage.

The findings underscore the importance of proactive risk management strategies and collaboration with insurance providers to navigate the evolving risk landscape effectively.

As Michelle McLaughlin, Executive Vice President and Chief Underwriting Officer at Chubb Middle Market, emphasised, “Middle market companies can benefit from the expertise and knowledge their agent or broker possess in preparing for short- and long-term catastrophe events.”

The post Middle market companies achieve record growth amidst rising risks: Chubb appeared first on ReinsuranceNe.ws.