LONDON -(Dow Jones)- The cost of U.K. trade credit insurance claims more than doubled in the first quarter of 2009 from a year earlier, as supply chains between businesses seized up, forcing companies to turn to insurers for compensation, the Association of British Insurers said Friday.
The ABI said the total value of claims in the first quarter of 2009 was GBP316 million compared to GBP119 million a year earlier.
The total number of claims in the first quarter was 9213, a 48% increase from the same period in 2008, the ABI 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," Nick Starling, the ABI's director of general insurance and health, said.
Trade credit insurance, which was thrust into the spotlight after insurance cover was reduced on suppliers to a number of well-known companies including the now-collapsed U.K. retailer Woolworths Group, is used to protect suppliers against the risk of non-payment by buyers of goods.
In May, the U.K. government introduced a GBP5 billion trade credit insurance top-up scheme to help maintain supply chains between businesses which were threatened after a reduction in credit insurance.
Last month, the U.K. government eased access to the scheme to allow more companies to use it following concerted pressure from business groups.
-By Ainsley Thomson, Dow Jones Newswires; 44 20 7842 9318; ainsley.thomson@dowjones.com
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Publié le 03 Juillet 2009 Copyright © 2009 Dowjones