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More businesses helped by trade credit insurance as economic uncertainty continues

Latest ABI figures show that as the economy worsens, more businesses are being helped by their trade credit insurance policies. In Quarter 3, 2008:

  • The total number of claims was 6,805, an increase of 34% from 5,084 in Q3 2007.
  • The total value of claims was £97.0 million, an increase of 58% from £61.4 million in Q3 2007.

Nick Starling, the ABI's Director of General Insurance and Health, said:

"Trade credit insurers are working hard to support their clients when trading is difficult, ensuring that they have the cover they need, and keeping an eye on their risks. Great care is taken by trade credit insurers to manage the balancing of risk on behalf of their customers. Cover is never withdrawn retrospectively for existing contracts; it only ceases when absolutely necessary, in circumstances where companies have the highest risk of default.

"Trade credit insurance claims figures are a good indicator of what is happening in the UK economy and how that is affecting UK businesses. Latest ABI data shows that large numbers of UK businesses have had to turn to this vital insurance to help them during the current financial crisis.

"It is the priority of trade credit insurers to continue to support customers through the looming recession, and at times to navigate them away from risk."

Last updated 01/07/2016