ABI: More businesses helped by trade credit insurance as economic uncertainty continues

ABI: More businesses helped by trade credit insurance as economic uncertainty continues

ABI: More businesses helped by trade credit insurance as economic uncertainty continues

Latest ABI figures show that as the economy worsens, more businesses are being helped by their trade credit insurance policies. In Quarter 3, 2008:

The total number of claims was 6,805, an increase of 34% from 5,084 in Q3 2007.
The total value of claims was £97.0 million, an increase of 58% from £61.4 million in Q3 2007.
Nick Starling, the ABI’s Director of General Insurance and Health, said:

“Trade credit insurers are working hard to support their clients when trading is difficult, ensuring that they have the cover they need, and keeping an eye on their risks. Great care is taken by trade credit insurers to manage the balancing of risk on behalf of their customers. Cover is never withdrawn retrospectively for existing contracts; it only ceases when absolutely necessary, in circumstances where companies have the highest risk of default.

“Trade credit insurance claims figures are a good indicator of what is happening in the UK economy and how that is affecting UK businesses. Latest ABI data shows that large numbers of UK businesses have had to turn to this vital insurance to help them during the current financial crisis.

“It is the priority of trade credit insurers to continue to support customers through the looming recession, and at times to navigate them away from risk.”

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Notes

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. A spreadsheet with details of quarterly trade credit insurance claims data from Q1 2007 to Q3 2008, plus a briefing note on trade credit insurance, are available by clicking on the links below.

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.