Broker launches new service to help firms maintain cover during recession
Marsh has launched a new service to help firms that still face problems renewing their trade credit cover.
Marsh said it will enable companies to continue trading effectively with suppliers and customers during the recession.
As part of the new service, Marsh’s specialist trade credit insurance team will:
• Work with clients to identify critical suppliers and their relationships with the credit insurance market;
• Determine which insurers to engage with and the level of priority to be attached to each supplier;
• Identify and facilitate engagement with the appropriate insurers, and where appropriate explore the option of the Government-supported top up scheme;
• Help provide information that meets an insurer’s minimum requirements in an easily assimilated and clear format.
Tim Smith, head of UK and Ireland trade credit at Marsh, said: “In recent months credit insurers have hardened their attitude, due to an increasing number of claims and worsening economic conditions. As a result, it is becoming increasingly difficult for companies to obtain optimum level of cover and, in many instances, those who insure their debts are finding that cover is being withdrawn on their customers.
“There is increasing evidence that this is having a negative effect with suppliers, who may refuse to supply on open credit, shorten payment terms or demand deposits or even cash in advance. For buyers, they may in turn suffer from shortages, have supply chain issues or have unexpected or unplanned burdens on their cash flow.