Spike in credit claims… | The Channel Partnership

This article from 2016 has been updated. See Insolvency statistics highlight the challenges in managing trade credit risk at a time of uncertainty

According to statistics from the Association of British Insurers, credit insurance claims are up 42% to nearly £150m in the last twelve months, a level equal to that of the claims made in the lead up to the 2008 financial crisis. In terms of claim numbers, this is a 19% jump to almost 11,000 claims, despite a low level of insolvencies in the UK.

“Economic uncertainty appears to be causing firms to claim on their insurance if one of their customers pays late, or not at all,” said Mark Shepherd, general insurance policy manager at the ABI.

Other relevant statistics:

• Claims are now 33% higher than in 2007
• There was a dip in claims in 2014 according to statistics from the International Credit Insurance and Surety Association
• Nearly 3,700 firms went bust in the first quarter of 2016, 5.4pc higher than the last three months of 2015.
• BHS is an example of the effect of a recent collapse; it went bust owing £1.3bn total to more than 1,200 creditors who are now waiting for the administrators to assess their claims.

Credit Insurance can be a great support for your business, allowing you to keep trading even if one of your debtors can’t. Call us today to see if credit insurance is right for you… 01275 81320.