KPMG warns trebling of claims will hit attracting capital
Mark Winlow, head of general insurance at KPMG, says credit insurers may collapse because claims have trebled according to the Association of British Insurers (ABI) figures, the FT reports
Credit insurers paid out £125m ($199m) during the third quarter of 2009, up from £38m on the third quarter of 2008.
The increase in claims paid is due to the record volumes of overdue or unpaid invoices notified to credit insurers during the third and fourth quarters of 2008 and first quarter of 2009.
Winlow said: “The big question is the long-term viability of some credit insurers. How can they continue to attract capital when the claims they are having to sustain are so sizeable?”
