The boss of the Association of British Insurers, Mark Shepherd, has said that the number of insurance claims made so far this year has reached its highest level in ten years. What has brought this on?
The blame is focused on Brexit uncertainty, competition from internet sales, a rise in business rates, weakening consumer demand and an increase in operating costs due to value of the pound. To an extent, these figures are corroborated by the latest government figures which record a 6% increase in insolvencies.
In this year’s first quarter there were 4,114 new trade credit insurance claims, an increase of 6% on the previous quarter, and with the value of claims paid reaching a staggering £48 million it is no wonder that there is cause for concern.
Whilst Shepherd is keen to emphasise the importance of having credit insurance, and he is probably right to do so, one can only wonder what the claims experience will be during this year’s last quarter if we leave the EU in a disorderly fashion.
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