Chubb and the National Center for the Middle Market (NCMM) released today new data that reveals middle market companies demonstrated continued robust growth against the backdrop of inflationary pressures, cybersecurity threats, natural catastrophes and insurance coverage gaps. These findings are the centerpiece of the 2023 Year-End Middle Market Indicator (MMI).
Middle market companies reported strong revenue growth compared to one year ago. On average, revenue was up 12.4%. More than half (55%) generated revenue growth of 10% or more. And more than eight in 10 (83%) said revenues were up year over year. These results are the highest since the MMI began surveying companies in 2012.
“Middle market companies are a bellwether for the overall health of the U.S. economy, and our survey shows they are posting record growth,” said Ben Rockwell, Division President, Chubb Middle Market. “The findings of the MMI provide relevant direction and insights for agents and brokers to best counsel middle market companies in navigating and mitigating the risk management pressures with this critical business segment.”
Increasing preparedness for emerging risks continues to be top of mind for the middle market. According to the MMI, firms believed they were completely or very prepared to respond to the following disruptions:
- Inflation (45%)
- Catastrophic incidents (53%)
- Cybersecurity threats (58%)
However, compared to results from the MMI report in the second quarter of 2023, businesses indicated a pullback on expansion plans. In the latest report, three out of five companies (61%) said they plan to introduce a new product or service in the year ahead, versus 68% in the mid-2023 survey. There were similar declines for expansion into new domestic markets (55% vs. 62%) and adding a new plant/facility (42% vs. 48%).
Inflation Number One Risk
The MMI found inflation continued to be the number one risk for companies, and likely to persist due to rising labor costs and…
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