The publication of the latest figures from the Association of British Insurers shows that Credit Insurance is proving invaluable to UK businesses.
New statistics from the Association of British Insurers (ABI) have revealed that UK businesses received the equivalent of over £4 million every week in claims pay-outs in 2016 – a total of £210 million over the year, across 12,221 claims.
This represents a rise of just over 40% on the amount in 2015, and an increase of 100% on the £105 million paid out during 2014. It’s also the highest figure since the peak in gross claims of 2009, when £286 million was paid out through Credit Insurance policies.
The total amount of trade covered by Credit Insurance in the UK has now reached £314 billion, as more companies realise the benefit of protecting their sales ledgers through a tailored Credit Insurance policy.
Commenting on the figures, Trevor Williams, Chair of the ABI Trade Credit Committee, and Head of Credit and Surety, Europe – QBE Insurance, said:
Trade Credit Insurance is an essential tool in enabling businesses to trade safely, both domestically and overseas. Without being able to claim for non-payment, UK businesses would have lost out to the tune of £4m a week – a significant figure which would have been a direct hit on their bottom line. Businesses, in particular SMEs, are unable to bear the brunt of non-payment which can have a detrimental impact on their financial health and can also have a negative knock-on effect rippling down the supply chain.
In a climate of economic uncertainty, businesses are increasingly using Trade Credit Insurance to protect themselves against the risk of non-payment. The fact that insured trade is at a record high is testament to the value businesses are increasingly placing on Trade Credit Insurance, allowing them to trade with a safety net of protection against the evident as well as unexpected risks.
To find out more about how Credit Insurance can help protect your business and built a solid foundation for growth, call Laura Prime on 01279 722555.