An increasing number of UK companies are reviewing their credit insurance options following economic uncertainty triggered by the UK’s exit from the European Union. According to the British Insurance Broker’s Association (BIBA), the UK’s decision to leave the EU is the most immediate challenge for UK businesses. So far, the impact has been as a result of risks associated with the weakened pound.
Mike Clark, chair of BIBA’s Trade Credit Focus Group commented “For companies which failed to take adequate measures, a 10% fall against the euro and 20% drop against the dollar has eroded short-term cash-flow and longer-term profit.”
With future potential impacts so tough to predict, businesses are increasingly realising that they need to plan for future risk and trade credit risk is high on the agenda. BIBA’s 2017 Manifesto calls on the UK government to work with BIBA and the trade credit insurance sector to help navigate through the challenges and uncertainties that are associated with the UK’s decision to leave the EU.