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Trade credit insurers pay record amount in claims

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Latest ABI figures show that trade credit insurers have paid out a record amount in claims in Quarter 3 (Q3) 2009.

The total amount paid in claims was £125m, an increase from £38m in Q3 2008, a 227% increase year-on-year.  This is a reflection of the global recession and the liquidity crisis affecting UK businesses.

These latest figures demonstrate the real value trade credit insurers add to businesses that are facing particularly challenging times during the recession.

Nick Starling, the ABI’s Director of General Insurance and Health, said: “This year has seen a record number of claims and payouts by insurers, with trade credit insurers continuing to insure well-managed businesses.  This provides reassurance to clients that they could cope if a company they are supplying to gets into difficulty, especially vital for trading in a recession.  Trade credit insurance often makes the difference between a good business staying afloat or going under.”