According to new data from Chubb and the National Center for the Middle Market’s (NCMM) 2021 Year-End Middle Market Indicator, 35% of middle market firms rank increased risks among the top three most difficult aspects of running their business in the current environment.
Ben Rockwell, Division President, Chubb Middle Market explained: “Business success and risk are inherently intertwined.
Middle market leaders have an opportunity to make risk management, from better understanding of their exposures to updating their risk mitigation strategies and insurance program, a priority, so they can support continued growth.”
The report showed that supply chain challenges present a significant hurdle, with 47% of middle market firms reporting that they have been directly impacted by supply chain disruptions or constraints in the prior six months.
This challenge is amplified for certain industries, with the percentage increasing to 49% for middle market technology companies, 54% for middle market financial services companies and 59% for middle market manufacturers.
According to the report, the tight labour market is straining middle market companies’ employees and hindering growth.
51% of middle market firms say their company is extremely or very challenged by finding and hiring employees with the right skills for the jobs available.
54% of these companies struggling to hire say that, as a result, employees are working long hours and more shifts, and 32% have experienced a slowdown in productivity and sales.
To navigate these and other challenges, middle market leaders are leveraging their insurance agents’ and brokers’ expertise: Per the data, 89% rely on an insurance agent or broker to manage risk.
As their needs evolve, middle market firms should continue to keep their agent or broker apprised of how their operations are changing, so they can adapt their risk management and insurance programs in lockstep and stay protected.
