Trade credit insurance rates positive, according to Marsh

New insurance capacity, increased competition for business among insurers and improved risk management have led to encouraging developments for trade credit insurance buyers across most of Europe in 2010, says Marsh.

Rates are reducing in France, Germany, Italy and the United Kingdom according to data published by the global broker.

Rates are either stable or experiencing minimal increases in Belgium, Denmark, Portugal and The Netherlands.

Localised increases are being recorded in Greece, Portugal and Spain.

Trade credit cover is also becoming easier to obtain, with insurers no longer taking sector-wide underwriting decisions, Marsh said.

Tim Smith, leader of Marsh’s trade credit practice in Europe, the Middle East and Africa, said: “Following the recession and the widespread cancellation of cover in certain high-risk industry sectors, insurers are now writing more business and deciding cover on a company-by-company basis.

“For companies seeking trade credit insurance, the outlook for the remainder of the year and into 2011 is very encouraging, especially for organisations with strong credit management procedures.”