Gallagher Study Finds Business Owners Focused on Preparing for the Unforeseeable

Rhea-AI Summary

Gallagher's recent survey reveals significant concerns among U.S. business owners about their insurance coverage for unforeseen events. Key findings include: 91% worry about extreme weather, 69% about cyber-attacks (though only 32% have coverage), 68% about supply chain disruptions, and 63% about U.S. election impacts. The study also highlights AI investment trends, with 81% planning to maintain or increase AI investments in 2024. However, risks like data exposure and regulatory issues are prevalent. Notably, 80% of businesses experienced financial growth in the past year, and nearly all have implemented risk management strategies. Talent attraction and retention remain crucial, with 86% concerned about this internal factor.

Positive

• 91% of business owners recognize the risk of extreme weather, highlighting awareness and potential for improved preparedness.
• 81% plan to maintain or increase AI investments, indicating a positive outlook on technology's role in growth.
• 50% are investing in AI to boost IT capabilities, showing commitment to technological advancement.
• 80% of businesses reported financial growth in the last 12 months, with 27% seeing significant growth.
• 96% have implemented risk management strategies, demonstrating proactive measures to mitigate business risks.

Negative

• 69% are concerned about cyber-attacks, but only 32% have cyber coverage, indicating a significant coverage gap.
• 68% worry about supply chain disruptions, which can severely impact business operations.
• 63% express concern about U.S. election results affecting their business, reflecting political uncertainty.
• 37% fear AI could expose sensitive information, posing a potential security risk.
• 35% worry that AI could make their work obsolete, indicating apprehension about technological advancements.

ROLLING MEADOWS, Ill., June 12, 2024 /PRNewswire/ -- Gallagher, a global insurance brokerage, risk management and consulting services company, recently conducted a survey of 1,000 American business owners, revealing 80% of business owners are worried their business insurance will not cover a specific event or loss. Business owners are most worried about:

• Extreme Weather Conditions: 91% worry about the threat of extreme weather conditions or natural disasters and the effect on their business.
• Cyber-Attacks: 69% expressed concern about the impact of a cyber-attack on their business, yet only 32% of business owners surveyed have cyber coverage.
• Supply Chain Disruptions: 68% expressed extreme concern about supply chain disruptions and how this will affect their business.
• U.S. Election: 63% are very concerned about the election results affecting their business.

"The world is changing at an unprecedented pace. Each day it seems there are new risks emerging as the next big thing," said J. Patrick Gallagher, Jr., Chairman, President and CEO. "As we face these challenges head on to help businesses of all sizes, it's important to constantly consider and evolve the ways in which we mitigate the risks and help protect the things that matter most. Sourcing the right partners to secure tailored protection is a great way to ease those concerns."

AI Growth Comes with AI Risk
The survey found that an overwhelming majority (81%) of business owners are looking to maintain or even increase AI investments in 2024. With the continued integration of AI, businesses are poised to unlock new avenues for growth and efficiencies. Yet, this expansion also amplifies additional risk exposures. Sustained growth coupled with robust protection will be paramount for navigating this evolving landscape effectively.

• Growth: Half of the businesses (50%) investing in AI are betting on the technology to boost their IT capabilities. Beyond that, many are looking to adopt AI to improve their outreach through marketing (42%) and sales (35%), putting AI to work to help their businesses grow.
  Small businesses with between 1-50 employees (52%) are less interested in AI than their larger counterparts:
  • 51-100 employees (87%)
  • 101-500 employees (87%)
  • 501-1,000 employees (93%)
  • + 1,000 employees (89%)
• Risk: Even with the positive benefits of the technology, many are concerned about its potential negative effects, ranging from exposing sensitive information (37%) and regulatory risks (35%) to making their work obsolete (35%).

Strategic Talent Attraction and Retention Can Lessen Business Risk
A majority (80%) of respondents experienced financial growth over the last 12 months, including 27% who saw significant growth. Concerns about their business and growth have led nearly all business owners (96%) to put risk management strategies or practices in place for their businesses.

And while business owners are aware of the many external factors that could impact their business, there is one internal factor that owners are also concerned about: talent. The survey revealed that 86% of business owners felt at least somewhat concerned about their ability to attract and retain talent.

"The heart and soul of an organization lies within its people and that talent is the driver behind any successful business," Gallagher said. "Attracting and retaining dynamic and diverse individuals who share your vision will create skilled teams and yield positive business growth." 

Media contacts
Gallagher: Jen Marshall; Jen_Marshall@ajg.com; Tel: +1 847 476 2734
Prosek Partners on behalf of Gallagher: Jordan Specht; Email: jspecht@prosek.com; Tel: +1 915 815 8335

Study Methodology
The survey was conducted between March 4 – 15, 2024, by Wakefield Research among 1,000 U.S. business owners using an email invitation and an online survey.

Results of any sample are subject to sampling variation. The magnitude of the variation is measurable and is affected by the number of interviews and the level of the percentages expressing the results. For the interviews conducted in this particular study, the chances are 95 in 100 that a survey result does not vary, plus or minus, by more than 3.1 percentage points from the result that would be obtained if interviews had been conducted with all persons in the universe represented by the sample.

About Gallagher
Gallagher is one of the world's largest insurance brokerage, risk management and consulting firms. As a community insurance broker and trusted local consultant, we help people and businesses move forward with confidence. With more than 52,000 people working around the globe, we are connected to the places where we do business and to every community we call home. Managing risk with customized solutions and a full spectrum of services, helping you foster a thriving workforce, and always holding ourselves to the highest standards of ethics to help you face every challenge - that is The Gallagher Way. https://ajg.com 

 

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SOURCE Gallagher

FAQ

What are business owners most concerned about, according to the Gallagher survey?

Business owners are most concerned about extreme weather conditions, cyber-attacks, supply chain disruptions, and the impacts of U.S. election results.

What percentage of business owners in the Gallagher survey have cyber coverage?

Only 32% of business owners surveyed have cyber coverage.

How many business owners plan to invest more in AI in 2024, according to Gallagher?

81% of business owners plan to maintain or increase their AI investments in 2024.

What percentage of businesses reported financial growth in the past year in the Gallagher survey?

80% of businesses reported financial growth in the last 12 months.

What internal factor are business owners most concerned about, according to the Gallagher study?

Business owners are most concerned about attracting and retaining talent, with 86% expressing this concern.