Most Middle Market Leaders Lack Insurance Confidence
Despite adopting more risk management programs, most leaders do not fully understand how their current policies protect them.
Updated on Oct. 15, 2026 in Remote Work
Live Poll
Do you feel confident that your organization's insurance coverage fully protects against modern business risks?
A new Hub International report shows that while 75% of middle-market organizations have formal enterprise risk management (ERM) programs, only 16% feel fully confident in their insurance positions. This gap highlights a significant disconnect between internal risk planning and the actual comprehension of coverage among leaders.
Why it matters
Risk fatigue is leaving many organizations struggling to translate their formal management programs into actionable insurance confidence, despite a 14 percentage point increase in ERM adoption since 2025. This uncertainty can lead to gaps in profitability protection as firms navigate complex threats like cybersecurity and AI adoption.
A survey of North American leaders reveals that 75% of organizations have formal enterprise risk management programs, an increase of 14 percentage points over 2025. Despite this, only 16% of organizations express full confidence in their current insurance coverage.
The players
Hub International
A global insurance brokerage and risk management firm headquartered in Chicago.
The details
Organizations currently tether 72% of their risk mitigation efforts to strict compliance requirements rather than holistic strategic planning. While 45% of leaders identify cybersecurity as a primary profitability threat and 38% cite AI adoption, many firms struggle to bridge the gap between identifying these hazards and ensuring their insurance policies adequately address them. This reliance on compliance-driven mitigation often keeps risk management siloed, with only 17% of firms reporting that risk accountability is shared across the entire employee base.
Timeline
2026: The HUB Middle Market Profitability & Resiliency Report was published.
2027: Business leaders are beginning to plan for this year.
Market Landscape
This survey tracks a shift where increased adoption of formal ERM programs fails to translate into higher institutional confidence due to pervasive risk fatigue. It follows the pattern of previous reports where compliance-led mitigation often fails to account for emerging technological threats.
Owners should prioritize an audit of current insurance policies against identified profitability threats like AI and cybersecurity rather than relying solely on compliance check-lists. Consult with your insurance counsel to verify that your policy language aligns with your 2027 risk planning goals.
The takeaway
The data suggests that formalizing risk management is only the first step toward actual operational resiliency. Operators should move beyond basic compliance and audit their coverage for specific gaps in cybersecurity and AI liabilities before the 2027 planning cycle concludes.
Further reading
Explore deeper insights on corporate structural shifts in our Remote Work section.
Live Poll
Do you feel confident that your organization's insurance coverage fully protects against modern business risks?
