WHITEHOUSE STATION, N.J., April 29, 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, reveals that the worst of the pandemic's economic impact might be in the rearview mirror for middle market companies.
While COVID-19 remains a significant concern, according to results from Chubb and NCMM's fourth-quarter Middle Market Indicator (MMI) report, the overall economic outlook of companies has improved. Since the second quarter of 2020, the confidence of middle market companies in the U.S. and global economies rebounded by ten percent and eleven percent, respectively, and expected revenue increased by four percent, nearing pre-pandemic levels.
Even as middle market companies look to the future, businesses will have to navigate the enduring impact of COVID-19. Forty-three percent of middle market companies report that the pandemic will have a negative long-term impact on their supply chain, and sixty percent have had to make "extreme" or "significant" long-lasting changes to their workplace due to safety concerns.
"The future looks positive for middle market companies, but there is a long road ahead of them," said Ben Rockwell, Division President, Chubb Middle Market. "A critical part of that journey will be assessing how their property and casualty risks have evolved in light of the pandemic. Whether revisiting business continuity plans or providing employees with resources to help set them up with an efficient ergonomic workspace at home or in the office, companies which acknowledge where they were unprepared ahead of the pandemic and implement lessons learned will be best positioned for future success."
However, a key resource that could help middle market companies mitigate such risks remains largely untapped: According to the data, only twenty percent of middle market companies rely heavily on an insurance agent or broker to understand and manage risk. For the sixty-eight percent of middle market companies which said risk management is "extremely" or "very" important to their overall firm, agents and brokers can help support growth by providing guidance on best practices around minimizing risk and transferring exposure.
Additional findings on current and emerging trends from across the middle market, plus snapshots of select industry findings are forthcoming for financial services, technology and manufacturing companies, as well as for those companies with international revenue.
About the Middle Market Indicator
Created and managed by the NCMM, the MMI surveys 1,000 C-suite middle market company executives across all industries on key indicators of past and future performance in revenues, employment and allocation of cash, reporting on economic confidence – locally, nationally and globally; identifies key business challenge areas; and measures how these are changing over time. The quarterly survey is designed to accurately reflect the nearly 200,000 U.S. businesses with revenues between $10 million and $1 billion.
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: www.chubb.com.