“We pointed out some of the likely outcomes we envisaged were to follow in the article we produced some six months ago, shortly after the failure of Carillion.
The latest statement from the ABI (see below) highlights to some degree the extent of the current challenges being faced and we believe there is still more to come.
Questions about Brexit still remain to be fully answered and with names like Debenhams hitting the press over the weekend the challenges for business getting the cover they need at an affordable price will become more difficult if the current trend continues.
Reported this week in Credit Insurance News
Tough trading times leads to the highest number of UK trade credit insurance claims since 2009.
New figures from the Association of British Insurers (ABI) show that in the first quarter of 2018, the number of new UK trade credit insurance claims notified (at 3,966) was up by 50% on the previous quarter. This equated to 44 new claims every day during the quarter – the highest quarterly figure since Q3 2009. In addition, the value of UK domestic claims paid – £54 million – was a record amount for the first quarter of a year. Mark Shepherd, ABI’s Assistant Director and Head of Property, Commercial and Specialist Lines, commented: “The collapse of Carillion was one of a number of high-profile major insolvencies, which dramatically highlighted how the ripple effect of a company failure can have a devastating impact throughout the supply chain . . . Never has the importance of trade credit insurance been greater – the survival of any business could be at risk without it.”
The full news article from the ABI’s can be read here.
TL Dallas is a leading provider of insurance solutions to protect against insolvency or protracted default exposures. If you would like to discuss your specific business needs we would welcome the opportunity to see if we can help provide more certainty in these uncertain times. Please email our Credit Insurance team on firstname.lastname@example.org.