In an earlier post, we reported that annual trade credit insurance claim payouts reached their highest level in 2018 since 2009. Insurers paid out £251 million to UK firms in credit insurance claims which equates to 50 businesses helped per day throughout 2018.
This trend has continued into 2019 where new figures released (on 14th June) by the Association of British Insurers (ABI) reveal a 6% rise in new trade credit insurance claims for Q1 2019 from Q4 2018. This is now the highest quarterly level since Q2 2009 totalling 5,114 new claims. The value of claims has also risen, reaching £48 million which is an increase of £1 million on the previous quarter. The number of firms helped on a daily basis now equates to 57.
The ABI once again highlight Brexit uncertainty, online sales competition, rising business rates, weaker consumer spending and the weak pound as contributors to the difficult trading climate.
“The ten year high in the number of trade credit insurance claims made so far this year, highlights the vital role that trade credit insurers are playing in helping UK firms navigate tough trading times” commented Mark Shepherd, Assistant Director, Head of General Insurance Policy at the ABI.
“While protecting against non-payment is essential, the expertise and support of trade credit insurers is also helping firms to grow and trade with greater confidence, reducing the risk of facing bad debts. Having this cover can also improve access to funding from banks and other financial institutions. While the number of firms with this protection is rising, too many firms remain at the mercy of bad debts. So, we must do more to raise awareness of the importance of trade credit insurance.”
As specialist credit insurance brokers, Acumen are experts in arranging bespoke credit insurance programmes for companies of all sizes to not only provide vital protection against bad debts, but also maximise claim payments and realise all of the other benefits afforded by a credit insurance policy in order to assist businesses trade with confidence. To discuss this is more detail, please call us on 0845 073 8630, email us at email@example.com or fill in our request a quote form.