22/04/2009 - Unpaid goods insurance claims soar
Figures show the number of trade credit insurance claims rose by 51% last year as companies were left unpaid for goods supplied to failed firms.
According to the Association of British Insurers (ABI), 8,366 claims were made in the final three months of 2008 by companies left unpaid for goods supplied to firms that had gone bust.
The total amount claimed increased to £360 million over the period, up from £257 million in 2007. The amount of turnover covered by the major UK trade insurers reached £302.5 billion in 2008, up from £282 billion 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."
However, there have been concerns that trade credit insurers will hike premiums and stop offering products to high-risk markets because of the recession.
But the Government is expected to offer small and medium-sized firms guarantees on trade credit insurance in the forthcoming Budget.
Copyright © Press Association 2009
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