Whole-turnover underwriters have lost faith in insureds, says Miller Insurance specialist
Andrew Perry, trade credit specialist at broker Miller Insurance Services, told the Airmic conference how the recession has made trade credit insurance vital for keeping companies in business.
“At the same time, the insurance market for these risks has undergone a seismic shift in the way it operates,” he said. “The speed of the downturn in the last two years took everyone by surprise. Whole-turnover carriers in particular had to withdraw cover rapidly in order to avoid being downgraded, and reinsurers also started to ask some tough questions of all their insureds.”
Perry said that, as a result of the withdrawal of a number of carriers, many whole-turnover underwriters have lost the trust of the insureds. “There is no doubt that there is a still a lack of capacity for certain buyers, whether because of the type of business they are in, or perhaps concerns about the strength of their balance sheet.”