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Reading this article counts towards accumulating your annual CII structured learning hours. Log in or register to track your reading time and answer questions related to the Emerging Risks learning outcome(s)

3 key risks for mid-market customers

At a glance

  • Underinsurance, online reputation management and cyber security are likely to be key issues for many businesses in 2016
  • Zurich is committed to offering you new ways to help your mid-market corporate customers manage these three key risks
  • We will be offering a range of new tools and services in 2016 as part of our refreshed mid-market proposition

This article counts towards accumulating your annual CII CPD structured learning hours for Emerging risks.

By reading this article, and correctly answering the three questions underneath, you will have achieved the following learning outcome: Identify key emerging risks and describe their main characteristics.

Visit the CPD Hub to log in and begin accumulating CPD hours.

We understand that every one of your mid-market corporate customers faces a unique set of challenges. We realise, too, that the needs of these customers can be complex, with risks that need to be carefully understood before they can be managed appropriately.

The challenges lying ahead for your customers are likely to include a combination of familiar and emerging risks.

Let’s take a look at these three key risks that could affect your mid-market corporate customers in 2016 and beyond.


Underinsurance is a significant challenge for businesses. Inadequate sums insured frequently arise in relation to business interruption (BI) policies and commercial property valuations. It is estimated that 40% of businesses underinsure their business interruption cover and up to 80% of commercial properties could be underinsured.

In spite of brokers’ best efforts, while most customers understand the need for BI insurance, many underestimate the level of cover needed to maintain their operations. Many businesses also set insufficient indemnity periods, often misjudging the time it could take to replace specialist materials and machinery following a loss.

While mitigating underinsurance can be a challenge for your customers in cost-conscious times, being able to demonstrate specific expertise, by assisting your customers in setting a more accurate sum insured – as well as educating them on the dangers of underinsurance, can provide a real opportunity for you to grow your business.

Zurich will soon be providing an easy-to-use tool to assist brokers and their customers with this calculation – speak to your usual Zurich contact to find out more.

Online reputation

Up to 75% of an average corporation’s value is now based on its intangible assets – including its brand name and reputation.

Here are more reasons why online reputation is so important to your customers:

  • The average adult in the UK spends more than four hours a day using computers, tablets, smartphones and other digital media
  • 61% of customers read online reviews before making a purchase
  • 50% of potential sales are lost because customers cannot find the information they are looking for online
  • Customers that are happy with the response they receive to an enquiry on social media are 43% more likely to recommend that company to family and friends

Companies without a strong online presence, or those that fall foul of negative online reviews, risk losing ground to competitors or suffering reputational damage.

We will be launching a new online reputation management tool in 2016 – speak to your usual Zurich contact to find out more about how we can help your customers manage and optimise their online reputation.


Cyber Risk

Cyber crime is a growing threat to UK corporates, with official government figures showing that 90% of larger businesses have suffered a cyber breach in the past year. The average cost of the worst single cyber breach suffered by each large UK business last year was more than £3 million.

More than 1,000 UK businesses have adopted Cyber Essentials, a government scheme that sets out five technical controls to protect businesses against the most common online threats, including viruses, malicious software and hacking.

Employees can be encouraged to play their part, for example by spotting potential phishing scams and alerting them to their company’s IT department.

However, even with robust technology and a workforce that has been educated on how to detect certain cyber threats, it is impossible for companies to completely eliminate the risk of a cyber breach, which is where the role of insurance comes in.

Speak to your usual Zurich contact to find out about the new element of cyber cover that will be automatically provided as standard for your mid-market corporate customers.

How Zurich can help

In 2016, our refreshed mid-market corporate proposition will be available, offering you new ways to help your clients manage the risks outlined above.

Our enhanced propositions across our six key trade sectors (manufacturing, food and beverage, wholesale and retail, sports, leisure and entertainment, professional business services & technology and communications) will include a number of online tools that can make it easier than ever to engage with and provide expertise to your mid-market customers.

We will be publishing more details about these additional services in 2016, but you can also speak to your usual Zurich contact to find out more.

Image © Getty

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