Carillion – trade credit insurers expect to pay just over £ 30 million to help businesses recover

25.01.2018

An estimated £31 million is expected to be paid by trade credit insurers to help firms in the supply chain recover from the collapse of Carillion the ABI said today.
Trade credit insurance covers firms against the risk of not being paid for goods or services that they provide, following an insolvency, protracted default or political upheaval. Latest figures show that, in 2016, trade credit insurers paid out £210 million to businesses due to non-payment.
Carillion is the latest in a number of high profile company collapses such as Monarch, Palmer & Harvey, Multiyork and Misco.
Mark Shepherd, Assistant Director, Head of Property, Commercial and Specialist Lines, at the Association of British Insurers, said:

The demise of Carillion is a powerful reminder of how trade credit insurance can be a lifeline for businesses in these uncertain trading times. This insurance is an essential business tool that helps firms trade and expand in the UK and overseas. For all businesses, large or small, bad debt could easily put their day-to-day operations at risk, threatening the jobs of their employees. One insolvency can risk a domino effect to hundreds of firms in the supply chain. Trade credit insurance is an essential resource that provides businesses with the confidence to trade, secure in the knowledge they are financially protected when insolvencies occur.

Trade credit insurance covers against the risk of not being paid for goods or services that businesses sell, which may arise as a result of insolvency, protracted default or political upheaval. It is available to businesses of all sizes, from SMEs, to large corporates and international businesses across any sector that supplies goods or services on credit terms.

See the ABI guide: 

www.abi.org.uk/globalassets/sitecore/files/documents/publications/public/2016/guidance/abi-trade-credit-insurance-guide.pdf

 

-ENDS-

 

Notes for Editors


1. Enquiries to:
Malcolm Tarling 020 7216 7410 Mobile: 07776 147667
Sarah Cordey 020 7216 7375 Mobile: 07860 189071
Dominic Stannard 020 7216 7350 Mobile: 07889 641702
Melanie Fernandes 020 7216 7660 Mobile: 07720497617

2. The Association of British Insurers is the voice of the UK’s world leading insurance and long-term savings industry.
A productive, inclusive and thriving sector, we are an industry that provides peace of mind to households and businesses across the UK and powers the growth of local and regional economies by enabling trade, risk taking, investment and innovation.

3. An ISDN line is available for broadcast

4. More news and information from the ABI is available on our web site, www.abi.org.uk.
www.abi.org.uk