According to the latest figures compiled by the Association of British Insurers (ABI), trade credit insurers paid out a record amount in claims in the third quarter of 2009.
The total amount paid in claims was £125 million ($200 million), an increase from £38 million ($61 million) in Q3 2008 of 227 percent year-on-year.
“This is a reflection of the global recession and the liquidity crisis affecting UK businesses,” said the ABI. “These latest figures demonstrate the real value trade credit insurers add to businesses that are facing particularly challenging times during the recession.”
Nick Starling, the ABI’s Director of General Insurance and Health, commented: “This year has seen a record number of claims and payouts by insurers, with trade credit insurers continuing to insure well-managed businesses. This provides reassurance to clients that they could cope if a company they are supplying to gets into difficulty, especially vital for trading in a recession. Trade credit insurance often makes the difference between a good business staying afloat or going under.”
Source: Association of British Insurers – www.abi.org.uk
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