Gaps in Preparedness Increases Vulnerabilities in Financial Stability, Workforce Vitality, and Maintaining Resiliency in Times of Crisis
CHICAGO, Dec. 6, 2023 /CNW/ -- Hub International Limited (HUB), a leading global insurance brokerage and financial services firm, released its 2024 HUB Outlook Executive Survey. In this unique survey, HUB explores the missed opportunities to leverage insurance, risk management and human resources strategies to impact overall profitability, vitality and resiliency. The survey highlights that while many organizations are confident about their preparedness, the findings reveal that the steps they are taking to inform their strategies is not as robust as it seems, leaving gaps in achieving their full potential when it comes to financial stability, performance and profitability, building a healthy and productive workforce, and ensuring a more resilient organization.
"In today's world, risk is ever-present and constantly evolving, and being prepared is now a more complex undertaking," said Marc Cohen, HUB International President and CEO. "HUB's advisors work with the C-suite to take a forward-looking approach to becoming future ready. By leveraging insurance to protect their financial stability and profitability, making investments in data analytics to improve workforce vitality, financial wellness and healthcare costs, and building a comprehensive business continuity plan to be resilient against future risks, they'll be more prepared."
The 2024 HUB Outlook Executive Survey assesses the current state of risk and resiliency of North American companies and provides 14 in-depth industry and sector-specific insights into the coming year. Key findings and actions from the survey that organizations should consider to prepare for the future:
- Close the gap between perceived and actual preparedness. Three-fourths of the organizations surveyed claim to be prepared to address the most critical risks such as disruption to business operations, increased economic challenges and unpredictability. However,76% of organizations lack ample insurance to maintain profitability while nearly 20% of organizations in the U.S. and Canada take property loss prevention measures only if local rules demand it.
- Use insurance as a tool to mitigate financial risk. The opportunity to leverage insurance as a strategic financial tool to manage profitability-related risks remains underutilized as 75% of organizations haven't explored the idea. Companies should consider using insurance as a strategic financial tool to minimize earnings volatility and strengthen their financial and overall organizational resilience.
- Amplify your focus on employee wellbeing to enhance workforce vitality. The executive survey found 68% of organizations identify employee wellbeing as a top strategy impacting workforce vitality, but only 36% have a strong and consistent focus on it. Companies can significantly improve vitality by using data pertaining to employee population, life stage and other demographic aspects - to design employee wellbeing solutions that are tailored to their workforce.
- Invest in advanced data analytics to meet employees' needs. When formulating and implementing an organization's benefits strategy, 53% of U.S. companies use data analytics to improve individual outcomes. However, the companies that claim to be using data analytics may not be collecting or using data to its fullest extent. A robust approach to data analytics encompasses efficient preparation, data acquisition, modeling and deployment, along with a continuous focus on improvement and adaptation.
- Develop an adaptive and effective Enterprise Risk Management (ERM) strategy for resilience. The survey found that 45% of organizations in North America conduct frequent ERM assessments—28% quarterly and 17% monthly. However, only 12% have comprehensive business continuity plans, and 43% note a misalignment between C-suite objectives and risk strategies. Organizations with risk management strategies that include comprehensive business continuity plans backed by alignment at the C-suite level are better protected against risk.
Read more insights on the 2024 HUB Outlook Executive Survey and Specialty Industry Outlooks, here.
2024 HUB Outlook Executive Survey Methodology
Conducted earlier this year, the survey polled 900 business leaders across corporate, risk, human resources and education/non-profit functions from companies in 14 sectors in the U.S. and Canada. Survey findings present insights into the risks that companies perceive in the present and future, their level of preparedness and the measures they plan to take to mitigate the identified risks. HUB also conducted a 2024 Outlook High Net Worth Survey, which surveyed 200 high-net-worth individuals and their advisors on the issues affecting affluent families and strategies to safeguard wealth.
About HUB International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker and financial services firm providing risk management, insurance, employee benefits, retirement and wealth management products and services. With more than 17,000 employees in offices located throughout North America, Hub's vast network of specialists brings clarity to a changing world with tailored solutions and unrelenting advocacy, so clients are ready for tomorrow. For more information, please visit www.hubinternational.com.
MEDIA CONTACTS:
Marni Gordon
Phone: 312-279-4601
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Jessica Wiltse
Phone: 312-596-7573
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SOURCE Hub International Limited
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