Cybersecurity, Economics and Compliance The Biggest Concerns of Mid-Market Leaders: Marsh McLennan Agency Report

WHITE PLAINS, New York, May 28, 2024–(BUSINESS WIRE)–Leaders of U.S.-based middle market companies believe cyber, economic and regulatory risks pose the greatest threat to their businesses in 2024, according to a new report released today by Marsh McLennan Agency, a Marsh subsidiary.

Marsh McLennan’s 2024 Business Insurance Trends Report is based on more than 500 responses primarily from senior executives at companies with fewer than 250 employees and annual revenues ranging from $10 million to $49 million. The report provides insight into the key risk concerns faced by mid-sized businesses and their preparedness to address key threats.

When asked what risks they were particularly or very concerned about as a threat to their business, 75% said cybersecurity and data privacy threats were due in part to an increasing reliance on third-party data management service providers. Economic risks, indicated by persistent inflation and higher interest rates, were second most important for 63% of respondents, followed by regulatory risks such as stringent employee classification rules and Biometric Information Protection Act (BIPA) regulations, reported by 61 % of respondents.

Mid-market organizations, although they represent only 5% of all U.S. domestic businesses, generate 33% of total U.S. business revenues.

“Midsize organizations operate in an increasingly complex and volatile business environment, requiring a more proactive approach to identifying and mitigating risk,” said Denise Perlman, president and national business insurance practice leader at Marsh McLennan. “Despite the challenges, our findings show that organizations are becoming increasingly aware of their company’s vulnerabilities and are working to ensure they have adequate insurance coverage to protect their profits.”

The report found that 64% of respondents indicated they had conducted a thorough review of their insurance in 2023; from just 14% in 2022

The five most frequently reported concerns included employment-related risks (57%), such as the increased emphasis on ergonomics, fall prevention and protection introduced by the Occupational Safety and Health Administration, and catastrophic risks (56%), driven primarily by the increasing frequency and intensity extreme weather phenomena.

About the Marsh McLennan Agency

Marsh McLennan Agency offers business, health and employee benefits, pensions and property, and private client insurance solutions to organizations and individuals looking for limitless opportunities. With 10,000 employees and 180 offices across North America, Marsh McLennan Agency combines the personalized service model of a local consultant with the global resources of the world’s leading professional services firm, Marsh McLennan (NYSE: MMC).

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