Seventy-nine percent of middle market companies indicate that risk management is "extremely" or "very" important to their businesses
WHITEHOUSE STATION, N.J., Sept. 21, 2021 /PRNewswire/ -- New data from Chubb and the National Center for the Middle Market (NCMM), housed at The Ohio State University Fisher College of Business, shows that middle market companies are finding risk management increasingly important after more than a year of dealing with pandemic-related and other disruptions. The percentage of middle market companies denoting risk management as "extremely" or "very" important to their firms has increased since the end of last year, jumping from sixty-eight percent in Q4 2020 to seventy-nine percent in Q2 2021.
Results from the Middle Market Indicator report (MMI) reveal some middle market firms started showing signs of economic recovery in Q2 2021. For example, sixty-six percent of respondents say their company performance has improved compared to one year ago, representing an increase of seventy-eight percent over Q2 2020 and sixty-five over Q4 2020.
However, some middle market companies remain concerned about potential long-term economic impacts of the pandemic. For example, a third of middle market companies believe COVID-19 will have a negative impact on their supply chains in the coming year. So as middle market companies continue to navigate the pandemic's effects on their businesses, they are becoming more attuned to the importance of risk management.
"As risks evolve, it's critical for middle market companies to continually assess how their exposures may be changing in tandem," said Ben Rockwell, Division President, Chubb Middle Market. "The pandemic has presented many challenges and heightened exposures for middle market companies, from grappling with new levels of supply chain disruption to remote work policies. As part of the planning process, middle market companies must make risk management a top priority, assess what they have in place and make adjustments where necessary to address emerging risks."
Notably, the data indicates that middle market companies are leaving a key risk management resource on the table: Only fifteen percent of middle market companies rely heavily on an insurance agent or broker to understand and manage risk. Agents and brokers are extremely knowledgeable about risk management best practices and can help middle market companies better understand their exposures, mitigate risks, and secure the insurance coverages for their unique needs so they can focus on continued growth and success.
An executive summary with a more detailed overview of the findings can be downloaded here. Additional findings on current and emerging trends among middle market technology, manufacturing and financial services companies, as well as middle market firms with international revenue, are forthcoming.
About the Middle Market Indicator
The MMI, which was created in 2012, surveys 1,000 executives (CEOs, CFOs and other financial decision makers) from the middle market to examine topics related to business capabilities, performance, growth drivers and economic outlook among other topics. This quarter's MMI was fielded during the first two weeks of June 2021. It is weighted to accurately reflect the size, industry-wide and geographic distribution of this sector, which includes companies ranging from $10 million to $1 billion in annual revenue. The 2Q 2021 survey was conducted by RTi Research on behalf of the National Center for the Middle Market and funded in partnership with sponsor Chubb and supporters Visa and VistaVu.
About the National Center for the Middle Market (NCMM)
The National Center for the Middle Market is a collaboration between The Ohio State University Fisher College of Business and Chubb. It exists for a single purpose: to ensure that the vitality and robustness of Middle Market companies are fully realized as fundamental to our nation's economic outlook and prosperity. The Center is the leading source of knowledge, leadership, and innovative research on the middle market economy, providing critical data analysis, insights, and perspectives for companies, policymakers and other key stakeholders to help accelerate growth, increase competitiveness and create jobs in this sector.
Housed at The Ohio State University Fisher College of Business, the National Center for the Middle Market is the first center of its kind in the nation. The Center enthusiastically serves middle market firms, students, academic researchers, policy makers, the media, and other key stakeholders with interests in the health and well-being of the middle market. The Center is fully committed to funding and distributing the most credible open-sourced research, dynamically creating new knowledge, providing programs that drive value for middle market companies, and offering a well-informed outlook on the health and future of the middle market via the Middle Market Indicator.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs approximately 31,000 people worldwide. Additional information can be found at: chubb.com.