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.

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