Trade Credit Insurance Payouts up by 23%

Trade Credit Insurance payouts are up 23% to protect UK businesses against bad debts.

According to figures released by the Association of British Insurers (ABI), insurance payouts to help businesses survive bad debts rose by 23% in the first half of 2023, to their highest first half yearly figure since 2018. The rise reflects the continued challenging trading environment faced by many UK firms.

The construction and retail sectors have borne the brunt, including high-profile insolvencies such as Henry Construction, Wilko, and the Buckingham Group. Figures from the Office for National Statistics show that of total businesses insolvencies in the first half of the year in England and Wales 19% were in construction, with 16% in wholesale and retail.

Trade Credit insurers have shown particular support for construction sector businesses this year. ABI data shows that the amount of coverage approved on construction buyers as of end of the first half of this year was over £29.6bn and the number of claims paid and reserved on construction buyers as of the year up to the end of June this year is £76.5 million. While the full impact of the high-profile Buckingham Group insolvency is yet to be seen, ABI data shows that the anticipated claims paid could total over £30m, a lifeline for businesses that were affected.

Credit Insurance provides cover against the risk of a business not being paid for goods or services that they sell, while also giving them access to detailed information and guidance on all aspects of trade.

For more information on how Credit Insurance could help your business, contact Clearview Credit today.

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