Company insolvencies are on the increase, according to Experian. The number of business failing in the fourth quarter 2002 increased by 4.6% compared to the same period in 2001.
The total increase for 2002 was 9.8%, with 18,926 insolvencies recorded in 2002, an increase of 1,691 from 2001.
Experian said a total of 4,728 companies failed during the fourth quarter of 2002 compared with 4,518 in the same period for 2001.
Compulsory liquidations rose by 1,706 (37%) in sharp contrast with other categories of insolvency. Voluntary liquidations for the whole of 2002 were up 470 (5%) with voluntary arrangements up by 1.8%.
Receiverships and administration orders both declined by 9.6% and 10.5% respectively.
Though this may be bad news for insurers, there was good news for the industry as a whole. Insurance was classed as one of ten sectors that recorded fewer failures during the past year.
The other nine strongest sectors were: the construction industry; plastics and rubber; diversified industrials; printing; paper and packaging; textiles and clothing; food manufacturing; agriculture; forestry and fishing; property; and lastly motor traders.
Scotland recorded the biggest increase in business failures in 2002 with 27.8%.
Telecommunications, information technology, business services, and engineering sectors were the worst affected sectors in 2002.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
