Trade credit claims soar in first quarter

Trade credit insurance claims rose by almost 50% in the first quarter of the year, compared to the same period in 2008, according to figures published by the Association of British Insurers.

While the number of claims climbed from 6225 to 9213, the value of claims hit £316m – representing an increase of 166% rise from the £119m they cost the industry during the first three months of 2008.

Nick Starling, ABI director of general insurance and health, said: “The substantial increase in both the number of claims received by trade credit insurers and the cost of those claims shows that trade credit insurers are continuing to support businesses, especially small enterprises, through the recession.

“Trade credit insurance claims are a good indicator of what is happening in the UK economy and how that is affecting UK businesses. Clearly, the economic situation remains very tough, trade credit insurers will continue to support their customers through detailed risk assessments and paying claims when things do go wrong.”