Middle-Market Companies Grapple with Inflation and Insurance Adjustments

Chubb’s latest research paints a stark picture for middle-market companies, which have shown resilience in the past year but face significant headwinds from inflation in 2024. Rising wages and disruptions from Middle East conflicts are key factors fueling this inflationary pressure.

As a consequence, nearly three-quarters of the companies surveyed are contemplating higher insurance coverage to counter the inflated replacement costs of assets. The report sheds light on the issues of underinsurance, particularly for property and equipment, and the often underestimated downtime following insured losses.

This underscores the necessity for comprehensive business interruption coverage and realistic continuity planning. The study also points out the broader challenges since the coronavirus pandemic, such as recession fears, talent retention, and cyber insurance adequacy, signaling a critical time for risk management and insurance strategy refinement among these companies.