The Association of British Insurers (ABI) has revealed the extent to which trade credit insurance helped UK businesses in 2009. During the year, insurers dealt with 22,791 claims, with the total amount paid out rising from £164 million in 2008, to £320 million.
According to the ABI survey, the 95% year-on-year increase reflects the ongoing effects of the global recession and the liquidity crisis on UK business.
However, figures for the final quarter of 2009 showed a significant improvement, with the number of new claims received down 23% on the previous three months.
The Associations director of general insurance and health, Nick Starling, comments: “This is consistent with the end of the downward trends observed in various sectors of the economy and the corresponding reduction in levels of corporate failures observed in Q4 2009.”
He adds: “The outlook for 2010, although improved from 2009, remains highly uncertain, which reinforces the importance of protection and risk management services provided by trade credit insurers.”