From Monarch to Palmer & Harvey, there were a series of high-profile company collapses during 2017 and with the economy continuing to present challenges to UK-based firms, the British Insurance Brokers’ Association (BIBA) has decided to take action.
The association has launched a new scheme for trade credit insurance for its members through CMR Insurance Services Limited. It is designed to protect businesses from the risk that their commercial clients may not pay their invoices – which could help businesses to capitalise on trade opportunities and protect their bottom line.
For members, this provides access to a class of insurance that can be invaluable to businesses, said BIBA head of technical services Mike Hallam. There is no question that there is a need for this type of insurance, according to the Association of British Insurers (ABI), in 2016 trade credit insurers paid out an average of £4 million per week in claims settlements.
Trade credit insurance is reported to have supported around £314 billion in UK trade last year – and now BIBA hopes that its partnership with CMR will give its members the financial backing they need to ensure claims are paid promptly and fully.
There are always risks associated with trade and taking steps to protect cash flow is a wise precaution in any economic environment, commented Christian Hoy, managing director of CMR Insurance Services. In today’s challenging marketplace the risks are heightened and this cover is more necessary than ever during these unpredictable and uncertain times.