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Nov 14, 2019 1:45 AM ET

Survey Produced by Chubb and the National Center for the Middle Market Finds Growth Rate Slowing and Perception of Risk Escalating among Middle Market Companies


Survey Produced by Chubb and the National Center for the Middle Market Finds Growth Rate Slowing and Perception of Risk Escalating among Middle Market Companies

iCrowd Newswire - Nov 14, 2019

WHITEHOUSE STATION, N.J.— Chubb and the National Center for the Middle Market (NCMM) – housed at The Ohio State University Fisher College of Business – have published a summary of findings from the most recent Middle Market Indicator (MMI), which underscores a slowing growth rate and a perception of escalating risk among middle market companies. Issued quarterly, the MMI explores current and emerging macro trends along with business risks across the middle market, measuring past and predicted revenue growth, employment growth, economic confidence levels and business investment.

“The insights gleaned from the MMI survey help us better understand the evolving needs of our clients,” said Ben Rockwell, Chief Underwriting Officer, Chubb Commercial Insurance. “In fact, the recent survey data revealed that an increased number of middle market executives identified legal, regulatory and compliance-related risk as a top concern. It is critical, therefore, for middle market companies to have the right insurance solutions in place to help mitigate these complex exposures.”

While results of the third quarter MMI showed a decrease in both revenue and employment growth rate for middle market companies, performance remained positive overall, with 60% of middle market executives saying their companies’ overall performance is still better today than it was one year ago. That said, many executives polled expressed increasingly modest expectations related to the economy, with respondents reporting confidence levels falling to 76% in 3Q’19 – down from 82% in 2Q’19. The research also found that an increasing number of executives would hold extra cash as opposed to investing it in their businesses (business investment now at 56% in 3Q’19 – down from 63% in 2Q’19).

“Middle market leaders tend to underestimate forecasts of future growth and hiring; however, our data have been predicting that growth would cool off, and now it has,” said Thomas A. Stewart, Executive Director of NCMM. “Despite indications of a slowing growth rate, the middle market continues to grow significantly faster than both big and small business.”

In the third quarter, 48% of survey respondents predicted risk for their company to increase over the coming year, while 47% believe risk within their industry will trend higher over the same time period. Top concerns among executives polled include: cybersecurity (46%), which was the leading concern for both prior quarters this year; state of the economy at it relates to costs (38%); closely followed by the state of the economy as it relates to growth (35%); legal, regulatory or compliance risk (33%); and competitive risks – whether domestic or new/disruptive competitors (31%).

For additional information on the Middle Market Indicator, and to register for the November 21 webinar, “Rediscover Market Dynamics: Perspectives of the Middle Market Q3 2019,” visit: Chubb’s Resource Center.

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.

Additional tools and insights for agents and insureds can be found by accessing Chubb’s Resource Center.

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, Chubb Limited, Cisco Systems, Inc., and Grant Thornton LLP. 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.

About Chubb 
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 ZurichNew YorkLondonParis and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.



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Tags:    Cybersecurity Newswire, Wire, North America, English