Trade credit claims hit record high
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Trade credit insurers have paid out a record amount in claims in the third quarter of 2009 as the global recession continues to stifle trade among many UK companies.
According to the Association of British Insurers (ABI), £125m was paid out in claims in Q3 signifying a 227% increase year-on-year and a marked rise in comparison with the £38m paid out at the same time last year.
The figures are an indication of the turbulent financial conditions in which UK firms continue to find themselves trading in as the economy trails behind its international counterparts by languishing in recession.
Nick Starling, the ABI's Director of General Insurance and Health, said: "This year has seen a record number of claims and payouts by insurers, with trade credit insurers continuing to insure well-managed businesses.
"This provides reassurance to clients that they could cope if a company they are supplying to gets into difficulty, especially vital for trading in a recession. Trade credit insurance often makes the difference between a good business staying afloat or going under."