ABI: Trade credit insurance claims rising
Jul 06 2009
The number of trade credit insurance claims has risen sharply, says the Association of British Insurers (ABI).
Figures from the organisation show that the number of claims on the cover recorded in the opening three months of the year was 9,213, up from the 8,366 reported in the last quarter of 2008.
The group also highlights that the current figure is a 48 per cent rise on the 6,225 claims reported in the first quarter of last year.
In addition, the rise in the value of claims has been more dramatic, increasing by 166 per cent over the year to £316 million for the same quarter.
Nick Starling, director of general insurance and health at the ABI, says: 'The substantial increase in both the number of claims received by trade credit insurers and the cost of those claims shows that trade credit insurers are continuing to support businesses, especially small enterprises, through the recession.'
He also suggests that claims on trade credit insurance are a useful indicator in what is happening in the wider economy and suggests the figures show that conditions remain 'very tough'.
Last month, business secretary Lord Peter Mandelson announced that more firms will be able to purchase top-up cover as part of the government's £5 billion trade credit insurance scheme.
Under the new guidelines, companies which have seen their cover reduced since October 1st last year will be eligible, an extension from the previous deadline of May 1st.
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