The latest figures from the Association of British Insurers (ABI) show that trade credit insurance claims have fallen for the first time in four quarters.
According to the ABI’s findings, in Q2 2009, the total number of claims was 5,661, a decrease of 1% from 5,702 in Q2 2008. Furthermore, in Q2 this year, the total value of claims was £81mn, an increase of 17% from £69mn in Q2 2008.
Meanwhile, provisional figures from the Insolvency Service show that the total number of company liquidations was 5,059 in Q2 2009, an increase of 37% from 3,689 in Q2 2008.
Nick Starling, the ABI’s director of general insurance and health, comments: “Trade credit insurance continues to do a vital job in helping companies through the recession and remains a lifeline for many companies. 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.
“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.
“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."
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