According to a new report published today by Marsh McLennan Agency, a subsidiary of Marsh, US-based mid-market business leaders view cyber, economic, and regulatory risks as posing the biggest threats to their operations in 2024.
Marsh McLennan Agency’s 2024 Business Insurance Trends Report is based on over 500 responses from primarily C-Suite executives at businesses with under 250 employees and between $10 million to $49 million in annual revenue. The report provides insights on the top risk concerns experienced by mid-market businesses and their readiness to handle the most significant threats.
When asked what risks they are extremely or very concerned about as a threat to their business, 75% said cybersecurity and data privacy risks, in part due to growing reliance on third-party data management vendors. Economic risks, highlighted by ongoing inflation and higher interest rates, were cited second by 63% of respondents, followed closely by regulatory risks, such as strict worker classification rules and Biometric Information Privacy Act (BIPA) laws, reported by 61% of respondents.
While only making up 5% of total national businesses in the U.S., mid-market organizations account for 33% of total U.S. business revenue.
“Mid-market organizations are operating in an increasingly complex and volatile business environment requiring a more proactive approach to risk identification and mitigation,” said Denise Perlman, President and National Practice Leader of Business Insurance at Marsh McLennan Agency. “Despite the challenges, our findings show that organizations are becoming more mindful of their business’ vulnerabilities and are seeking to ensure proper insurance coverage is in place to protect their bottom lines.”
According to the report, 64% of respondents indicated that they conducted a thorough review of their insurance coverage in 2023; up from just 14% in 2022.
Rounding out the top five reported concerns are workforce risks (57%), such as an increased focus on ergonomics, fall prevention and protection introduced by the Occupational Safety and Health Administration, and catastrophic risks (56%), primarily driven by rising frequency and severity of extreme weather events.
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