ABI: Economic slowdown encourages more companies to take up trade credit insurance

ABI: Economic slowdown encourages more companies to take up trade credit insurance

ABI: Economic slowdown encourages more companies to take up trade credit insurance

Figures published by the ABI (Association of British Insurers) show that the number of companies taking out credit insurance increased by 10% during 2007. This is the third consecutive year that the market has grown, with a 40% rise since 2004. This shows that more companies are relying on trade credit insurance to help them navigate risk and protect them during an economic slowdown.

Nick Starling, the ABI’s Director of General Insurance, said:

“It is positive news that there is a greater awareness amongst small businesses as to the value of trade credit insurance during periods of increased risk and volatility. The economic slowdown has driven the number of policies up to near-record highs.

“While the economy is in decline, trade credit insurers expect to pay out more claims during 2008, as business insolvencies rise.”

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Notes for Editors

1. Enquiries to:
Jonathan French 020 7216 7392 (Mobile: 07958 330 480)
Malcolm Tarling 020 7216 7410 (Mobile: 07776 147 667)
Erfan Hussain 020 7216 7411 (Mobile: 07712 841 184)
Kelly Ostler-Coyle 020 7216 7415 (Mobile: 07968 364 302)

2. Trade Credit Insurance is designed to protect businesses against bad debts caused by customer insolvency or payment default. In addition, trade credit insurers commonly offer their clients a range of credit management services, such as assessing the creditworthiness of potential customers, and debt collection. So trade credit insurers not only protect firms from customer insolvency, but through an ongoing relationship with their policyholder minimise insolvency risk.

3. The ABI is the voice of the insurance and investment industry. Its members constitute over 90 per cent of the insurance market in the UK and 20 per cent across the EU. They control assets equivalent to a quarter of the UK’s capital. They are the risk managers of the UK’s economy and society. Through the ABI their voice is heard in Government and in public debate on insurance, savings and investment matters.

4. An ISDN line is available for broadcasts.

Copies of all ABI news releases, together with other information from the Association, can be seen on our website http://www.abi.org.uk