79% of middle market companies now see risk management as important
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, 66 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 (pictured), 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.
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