In response to the continuing problems UK companies are experiencing in renewing their trade credit cover during the worldwide recession, Marsh announced the launch of a new service “to help these organizations stabilize or improve the credit limits issued by insurers.” The service will enable companies to “continue trading effectively with suppliers and customers during the recession.”
Marsh explained that as part of the new service its specialist trade credit insurance team will undertake the following:
— Work with clients to identify critical suppliers and their relationships with the credit insurance market;
— Determine which insurers to engage with and the level of priority to be attached to each supplier;
— Identify and facilitate engagement with the appropriate insurers, and where appropriate explore the option of the Government-supported top up scheme;
— Help provide information that meets an insurer’s minimum requirements in an easily assimilated and clear format.
Commenting on the launch of the new service, Tim Smith, Head of UK and Ireland Trade Credit at Marsh, stated: “In recent months credit insurers have hardened their attitude, due to an increasing number of claims and worsening economic conditions. As a result, it is becoming increasingly difficult for companies to obtain optimum level of cover and, in many instances, those who insure their debts are finding that cover is being withdrawn on their customers.
“There is increasing evidence that this is having a negative effect with suppliers, who may refuse to supply on open credit, shorten payment terms or demand deposits or even cash in advance. For buyers, they may in turn suffer from shortages, have supply chain issues or have unexpected or unplanned burdens on their cash flow.
“In this challenging insurance market, businesses must take positive steps to help them access and maintain their credit limits. Marsh’s new trade credit insurance service enables clients to gain more control over the underwriting decisions that affect their businesses and offers the opportunity to pre-empt an insurer’s decision to restrict or cut cover.”
Marsh has a dedicated Trade Credit Practice which specializes in arranging trade credit insurance for firms from all sectors around the UK. Marsh was voted ‘Best Insurance Broker’ in 2006, 2007 and 2008 and was voted ‘Highly Commended’ in 2009 in the Trade Finance Awards for Excellence.
Firms seeking further information and assistance can contact Marsh’s dedicated trade credit helpline on 020 7357 2782 (available between 8am and 6pm weekdays) or email: firstname.lastname@example.org.
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