General Insurance Article - Highest number of trade credit insurance claims since 2009


The number of claims made by UK firms in the first quarter of the year to cover non-payment of debts were at their highest level since 2009 according to data published today from the Association of British Insurers (ABI).

 More than 40 new claims every day in the first quarter of the year as tough trading times continue to bite firms.
 Amount paid to help UK firms cope with bad debts were at their highest first quarter level.
 Recent company trading problems further highlights the need for trade credit insurance.
  
 Corporate insolvencies roseby 13%1. on the previous quarter in England and Wales, with several recent high-profile company restructures further highlighting how challenging the trading environment remains.
  
 ABI’s figures show that in the first quarter of 2018:
 The number of new trade credit insurance claims notified at 3,966 was up by 50% on the previous quarter as the insolvency of Carillion hit. This equated to 44 new claims every day during the quarter, the highest quarterly figure since Q3, 2009.
 The value of UK domestic claims paid - £54 million - was a record amount for the first quarter of a year.
  
 Mark Shepherd, Assistant Director, Head of Property, Commercial and Specialist Lines, ABI, said: “This is a tough time to be in business and it is not getting any easier. The collapse of Carillion was one of a number of high-profile major insolvencies, whichdramatically highlighted how the ripple effect of a company failure can have a devastating impact throughout the supply chain.
  
 The commercialenvironment remains a challenging one for customers, suppliers and insurers.
  
 “Never has the importance of trade credit insurance been greater – the survival of any business could be at risk without it. With too many firms at the mercy of non-payment of debts, the time has come for trade credit insurance to become an essential part of every businesses’ contingency planning”.
  
 The ABI UK Trade Credit Data Report compiles data from nine trade credit insurers: AIG, Atradius, Coface, Euler Hermes, Markel International, QBE, Tokio Marine HCC, XL and Zurich. 

Back to Index


Similar News to this Story

Call for simplification of EU cybersecurity regulation
Insurance Europe has welcomed the European Commission’s review of the Cybersecurity Act (CSA) and the forthcoming digital omnibus initiative, supporti
7 California wildfire lessons learnt for European insurers
The devastating January 2025 wildfires in Los Angeles, which destroyed over 16 000 structures and caused insured losses of approximately USD 40 billio
Do not be left high and dry this summer
Aviva is urging caution as data reveals a correlation between warm weather and fire claims. Number of garden fire claims is already significantly high

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.