Trade credit claims drop, says ABI
This is the first time the number of claims has fallen since Q2 2008, the Association of British Insurers reports
The number of companies making claims because of customer collapses has
dropped for the first time in four quarters, the Association of British Insurers
has said.
The body, which represents 90% of the UK insurance industry, reported 5,661
claims in Q2 2009, a significant decrease of 39% from the first quarter of the
year which saw 9,213 payout requests.
This is the first time the number of claims has dropped since Q2 2008 which
saw 5,702 claims lodged.
However the total value of claims was £81m, an increase of 17% from
£69m in Q2 2008
Nick Starling, the ABI’s Director of General Insurance and Health, said:
“Trade credit insurance helps clients to avoid risks when times are tough,
and pays claims when those risks cannot be avoided. It often makes the
difference between a good business staying afloat or going under.
The trade body referred to Insolvency Service figures showing 5,059
liquidations in Q2 2009, an increase of 37% from 3,689 in Q2 2008.
“Trade credit insurance claims decreasing, while company insolvencies
rise shows the crucial part that insurers play in helping to steer
their customers away from risk,” added Starling.
“But the economy is not out of the woods yet. Many companies may
still be vulnerable, making trade credit insurance more valuable than
ever. Insolvencies are just as likely to happen while the economy is
recovering as they are when it’s entering a downturn.”