New data released in the 2023 Mid-Year Middle Market Indicator (MMI), from Chubb and the National Center for the Middle Market (NCMM), reveals that against the backdrop of a challenging economy, middle market companies are thriving with nearly three fourths reporting an improvement in overall performance compared to year prior, a record high for the survey. Findings are supported by top line growth over the past 12 months, overall employment growth, and continued expansion into new domestic markets with new products or services introduced.
“The mid-year survey showcases a number of positive economic indicators that reinforces the optimism and positive direction for the middle market segment,” said Ben Rockwell, Division President, Chubb Middle Market. “The insights garnered from the MMI survey help us understand the landscape middle market companies are facing, which ultimately provides increased awareness of emerging opportunity areas, risks and the proper guidance Chubb can provide in these areas.”
In the MMI, 60% of middle market firms found inflation risk as extremely or very difficult to manage, a 3%-point decrease over 2022 data. In addition, supply chain risk decreased 7% points to 43% and 49% of middle market firms indicated recession risk remained extremely or very difficult to manage, an 11%-point decrease from the prior study.
As companies continue to grapple with inflationary concerns, their costs rise and ultimately affect all facets of their business. “Even still with inflation risk declining, it is still having far reaching effects with 40% reporting a negative impact in the last 6 months according to the MMI. This includes an impact on business costs, including increasing commercial construction material costs; an important factor for companies rebuilding following a natural catastrophic event,” said Michelle McLaughlin, Executive Vice President and Chief Underwriting Officer, Chubb Middle Market.
McLaughlin added, “In fact, we are seeing more severe and frequent weather events that are impacting our clients. We work with them to ensure they have adequate coverage, as well as solid risk mitigation strategies in place to help them stay ahead of these types of economic impacts.”
Chubb’s Executive Summary with detailed findings are available here. Additional industry insights will be forthcoming across manufacturing, technology, financial services, and life sciences.
Upcoming 2023 Middle Market Agent/Broker Event
Join the National Center of Middle Markets’ Doug Farren and Chubb executives on Wednesday, October 4, 2023 from 1:30-2:30 pm ET for a dynamic webcast panel discussion around the Mid-Year Middle Market Indicator findings with a special Chubb Climate+ feature, along with our perspective on the trending topics. Check out the NCMM/Chubb Insights page for webcast registration here.
About the Middle Market Indicator (MMI)
The MMI, which was created in 2012, surveys 1,000 executives (CEOs, CFOs and other financial decision makers) from the middle market to examine topics related to business capabilities, performance, growth drivers and economic outlook among others. The 2023 Mid-Year MMI was fielded in June 2023. It is weighted to accurately reflect the size, industry-wide and geographic distribution of this sector, which includes companies ranging from $10 million to $1 billion in annual revenue. The middle market represents one-third of private sector GDP, employing approximately 48 million people. The survey was conducted by RTi Research on behalf of the National Center for the Middle Market.
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 and Visa. 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 and insights for companies, policymakers and other key stakeholders. NCMM 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 40,000 people worldwide.