Number of claims up by nearly half but value rises 166%
Association of British Insurers (ABI) figures show that trade credit insurance claims rose by 166% to a record £316m in the first quarter.
The number of claims made by UK companies for defaults on payments for domestic and international trade rose by 48% to 9,213. It was the fifth consecutive quarter that claims have risen year on year.
The number of UK companies with trade credit insurance policies in 2008 was 14,086, compared 13,793 in 1987.
Nick Starling, the ABI's director of general insurance and health, said: "The substantial increase in both the number of claims received by trade credit insurers and the cost of those claims shows that trade credit insurers are continuing to support businesses, especially small enterprises, through the recession."
"Trade credit insurance claims are a good indicator of what is happening in the UK economy and how that is affecting UK businesses. Clearly, the economic situation remains very tough, trade credit insurers will continue to support their customers through detailed risk assessments and paying claims when things do go wrong."
