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Credit insurers saved from colossal Covid losses due to state support

By 2020-08-10T08:32:00

pandemic insurance

Ratings agency predicts that demand for trade credit insurance will increase in the medium to long-term, as SMEs and corporates realise the value of cover in the wake of Covid-19

Credit insurers will remain buoyant amid the current Covid-19-related economic recession as trade credit backstops provided by governments will ensure losses won’t loom as large as they did during the 2008 global financial crisis, said credit rating agency Fitch Ratings.

The agency predicts that pandemic-related credit insurance claims will peak in late 2020, as well as continue well into 2021, however “credit insurers’ financial performance should then improve as they re-underwrite business at higher prices to recoup losses and meet higher demand”.

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