- The full 2022 UK SME Risk Report can be downloaded here
London, 26 September, 2022 – According to new research by Marsh Commercial, the world’s leading insurance broker and risk advisor, small and medium-sized companies across the UK are most concerned about the impact of employee mental health and wellbeing, financial uncertainty, and health and safety on their businesses over the next 12 months.
The findings come from Marsh Commercial’s UK Business Risk Report 2022, which features data obtained in May and June 2022 from over 1,700 UK businesses with revenues of up to £20 million. Now in its second year, the report explores how circumstances over the last 12 months have impacted the business risk appetite and approach to risk management among the UK’s small and medium-sized businesses.
Almost half (49%) of respondents identified employee mental health and wellbeing as a key risk, up from 30% in 2021 when COVID-19 related risks dominated business risk registers. While over one-third (36%) of businesses questioned remain concerned about financial uncertainty – indicating that balance sheet volatility still persists – Marsh recorded a decrease by 6% from 2021. One-third (33%) of respondents identified health and safety as a key concern this year, up marginally from 32.6% last year.
The top three emerging risks – identified as being of the greatest concern – all reflect the wider economic climate. Two-fifths (39%) of respondents pointed to increased energy costs, a third (32%) cited inflation, and 27% said staff shortages were a pressing issue. Rising inflation in particular can have an acute impact on firms’ risk and insurance programmes, resulting in underinsurance of property and other valuable assets.
Commenting on the findings, Alistair Fraser, CEO, Corporate & Commercial UK, Marsh, said: “Small and medium-sized businesses across the UK, in every region and sector, are navigating a hugely diverse array of risks amidst a very challenging operating environment. Since the survey was conducted, UK inflation has reached a 40-year high, which will have a profound impact on how these firms operate in the near and longer-term. As new risks emerge and current risks continue to evolve, we urge businesses to review their current insurance arrangements and approach to risk management, to build even greater resilience into their people and operations.”
More information can be found here.
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Notes for Editors
For further information, please contact James Olliver on [email protected]
Methodology
Survey of 1,713 small and medium sized businesses ran between May and June 2022.
About Marsh
Marsh is the world’s leading insurance broker and risk advisor. With around 45,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data-driven risk solutions and advisory services. Marsh is a business of Marsh McLennan (NYSE: MMC), the world’s leading professional services firm in the areas of risk, strategy and people. With annual revenue over $20 billion, Marsh McLennan helps clients navigate an increasingly dynamic and complex environment through four market-leading businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. For more information, visit mmc.com, follow us on LinkedIn and Twitter or subscribe to BRINK.
In the United Kingdom, Marsh Ltd is authorised and regulated by the Financial Conduct Authority.
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