There has been a significant rise in the value of trade insurance claims compared with a year ago.
Figures released by the Association of British Insurers (ABI) have shown that the total value of claims made reached £316 million in the first quarter of 2009; for the same period in 2008, it was £119 million.
Just as the value of claims has gone up so too has the total number of firms seeking to cover the loss of income from customers.
In the first quarter of 2008, there were 6,225 claims; 12 months later that figure had climbed to 9,213, a rise of 48 per cent.
Nick Starling, the ABI’s director of general insurance and health, said: “The substantial increase in both the number of claims received by trade credit insurers and the cost of those claims shows that trade credit insurers are continuing to support businesses, especially small enterprises, through the recession.
“Trade credit insurance claims are a good indicator of what is happening in the UK economy and how that is affecting UK businesses. Clearly, the economic situation remains very tough, trade credit insurers will continue to support their customers through detailed risk assessments and paying claims when things do go wrong.”
