KPMG: Credit insurers must increase premiums and provide cover
Credit insurers shouldn't give up on cover: instead they should just up their premiums, says KPMG expert
KPMG
has suggested credit insurers should look at increasing premiums
rather than just pulling cover.
The tough economic conditions have seen a number of trade credit insurers
pull their cover. But KPMG general insurance advisory partner Mark Winlow said
increasing premiums was better than pulling cover.
‘If there is a market for cover, which there is, and the premiums are
attractive, which they could be, then other insurers will be attracted to what
should be a profitable and growing segment,’ said Winlow.
‘I have sympathy with credit insurers who are working to maintain stable and
profitable businesses.
‘However, increasing premiums and changing terms and conditions may be a
better alternative to pulling cover; perhaps applying the old adage that there
are no bad risks, just badly rated risks.’
Accountancy
Age blog contributor and MD of Graydon UK, Martin Williams,
has
recently
flagged up concerns over the credit insurance industry’s pulling of
cover.
Further reading:
Credit insurers slammed for
pulling supplier cover