Nationwide recently did a survey of insurance agents and business owners. That survey found that other than when it comes to the economy, the majority of agents and middle-market business owners have a positive outlook for the future.
The why of the negatives in the survey comes from continuing high inflation, high prices for some materials, labor costs that are growing, tight supply-chain issue and rising interest rates that make loans and credit more expensive.
All that makes some businesses — and agencies — looking at ways to cut costs.
Here are the findings from Nationwide’s survey about the economy:
- 75% of middle market businesses say inflation is their biggest concern
- 81% of small businesses rate the nation’s economy as negative
- 61% of middle market business owners rate the nation’s economy as negative
- 59% of insurance agents rate the nation’s economy as negative
As for their own businesses, Nationwide found:
- 55% of small business owners rate the future of their business as positive
- 74% of mid-market businesses rate the future of their business as positive
- 73% of insurance agents feel positive about the condition of their business
- 72% of small business owners say inflation has hurt their business
- 75% of middle market businesses say the same thing
- 50% of small business owners have been negatively impacted by rising interest rates
- 62% of mid-market business owners have been negatively impacted by rising interest rates
- 66% of all business owners are expecting a recession before the end of 2023
- 70% think it will be as bad as the Great Recession of 2009
- 57% of insurance agents expect a recession by the end of 2023
- 74% think it will be as bad as the Great Recession
All business owners — Nationwide’s survey found — are experiencing economic pressures that are forcing them to look at ways to cut the cost of doing business. The price of insurance isn’t one of the costs those businesses are looking at as a negative.
However, many of the businesses responding to the survey say they are in discussions with agents about their coverage. Of those, 27% have specifically requested that their agents to send them quotes that will help lower their costs.
Source link: Nationwide — https://bit.ly/3PSz5ql