INSURANCE claims by companies which were not paid for goods they supplied to firms that went bust soared more than 50 per cent in the final three months of 2008.
The Association of British Insurers (ABI) said trade credit insurance claims jumped 51 per cent to 8,366 compared with a year earlier as the recession tightened its grip on companies.
Figures released yesterday, showed that the total value of clai
ms incurred over the period was £360 million, up from £257m in 2007, the ABI said.
The total value of turnover covered by the major UK trade insurers – such as Atradius, Coface, Euler Hermes and Zurich – hit £302.5 billion in 2008, up from £282bn the previous year.
Nick Starling, the ABI's director of general insurance and health, said: "The latest rise in trade credit insurance claims, and the value of turnover covered, shows that insurers are playing a crucial role and continue to help their customers through the recession."
There have been concerns over trade credit insurers hiking premiums and pulling out of some high-risk markets such as retail altogether.
Many firms have been hit by the withdrawal of trade credit insurance in the recession.
A decision by insurers to withdraw cover from suppliers to Woolworths hastened the demise of the high street icon at the end of last year as it was forced into more onerous payment terms, draining its cash.
The full article contains 240 words and appears in The Scotsman newspaper.
