Credit insurers pay you £4 million a week!
Ever wondered if credit insurance companies actually pay claims out to their clients? Well, we've got some news for you thanks to figures from the Association of British Insurers (ABI).
The latest figures from the ABI reveals that trade credit insurers paid their policyholders over £4 million in claims every week last year. The total claims paid to businesses that protect themselves with credit insurance were £210 million, which equates to just over £4 million a week. This is 40% up on 2015 and the highest since 2009.
The ABI's statistic highlights
- Payment of gross claims has fluctuated since 2007, with a peak in gross claims paid in 2009 at £286 million, and the lowest figure recorded in 2014 at £105 million.
- The number of claims notified also peaked in 2016, to its highest level since 2009 at 12,221 claims.
- The level of trade covered by trade credit insurance in the UK has reached £314 billion, up 6% on £295 billion in 2015.
- A fifth of policies last year covered businesses exporting goods or services overseas with just over three-quarters covering domestic trade.
- The share of gross written premiums by distribution channel has remained fairly constant with 93% recorded as going through an intermediary and 7% going direct in 2016. This demonstrates the ongoing importance of the broker in getting the message on trade credit insurance out to the business community.
The ABI wrote:
"With total company insolvencies in the UK rising by 12.6% from 2015, UK businesses continue to face risks with economic volatility in many export markets, alongside subdued UK growth across the manufacturing, construction and services sector. Accordingly, the trade credit insurance market continues to grow with almost 12,000 policies in force, as more businesses look to protect themselves against insolvency or protracted debt."