Assurex Global Publishes 2023 Manufacturing Benchmark Report

COLUMBUS, OHIO – The results from the third annual 2023 Manufacturing Benchmark Report have been published and are now available. This is the annual survey of the purchasing habits of manufacturing companies that are insured through Assurex Global Partner Firms. The survey incorporates data from 1,045 firms, generating revenues from less than $1 million to $28 billion.

According to the U.S. Department of Commerce, manufacturing companies contributed $2.3 trillion, or 11.9 percent, of the U.S. Gross Domestic Product in 2021. With the report, manufacturing company decision-makers can find insights, statistics, and other valuable information gleaned from the purchasing decisions of more than 1,000 peer companies, all of which can help build a good framework for their own insurance purchasing decisions.

“Assurex Global’s 2023 Manufacturing Benchmark Report serves as a comprehensive tool to leverage in our conversations with our manufacturing clients and prospective clients that sets us apart with added value,” said Andrew Kapnick, Vice President at Kapnick Insurance Group. “Manufacturers need good information to make optimal risk management decisions, and the report allows them to compare their decisions with their peers.”

The manufacturing sector has seen relatively strong growth over the past two years as the economy recovered from the COVID-19 pandemic. Most economists expect the growth to be sustained through 2023. Growth may continue to be constrained by challenges resulting from supply chain bottlenecks and in attracting an adequate, educated workforce. Inflationary pressures will continue to increase the cost of raw materials and component parts, which will squeeze profit margins.

The survey presented several interesting observations that represent a changing insurance marketplace, including:

• Property Insurance
  • There was significant variability in the relationship between revenue and property values, driven by business specialty.
  • Property rates have increased 37 percent on average compared to last year. Rates tend to decrease as property values increase.
• General and Excess Liability Insurance
  • General liability rates increased 18 percent on average compared to last year’s survey. Small firms experienced much higher liability rates than large firms.
  • Larger organizations tended to purchase significantly higher excess liability limits than smaller ones.
• Ancillary Coverages
  • The percentage of firms purchasing directors and officers liability coverage has increased compared to last year’s survey, as have the limits purchased.
  • D&O premiums increased 37 percent on average compared to last year.

Assurex Global conducts numerous reports throughout the year to assist partners and clients. Benchmark reports are also available for the Education, Health Care, Construction, Non-Profit, Real Estate, and Technology/Life Sciences industries.