Govt confirms end June conclusion of Trade Credit Reinsurance scheme

Amid a brightening outlook for economic recovery in 2021 and appetite for new business among participating insurers, the government and the Association of British Insurers have announced that the Trade Credit Reinsurance scheme will close on 30th June, as planned.

The temporary scheme is understood to have protected more than £575bn of business turnover by providing around £210bn in insurance cover.

Huw Evans, director-general of the ABI, said: “Insurers were pleased to have worked closely and constructively with the UK government on this temporary scheme. At a time when firms needed extra support during the pandemic, the scheme has helped ensure that businesses remained able to insure against potential risks in their supply chain. The scheme has been an excellent example of how government and the industry can work together on solutions to unprecedented market challenges to ensure the continued availability of insurance.

John Glen, economic secretary to the Treasury, said that moving forward, insurers and businesses should continue to proactively engage as the scheme is wound down, to ensure any necessary revisions to cover are minimised.

Commenting on the announcement, Stuart Ramsden, Regional Director UK & Ireland at trade credit insurer Atradius, said: "The government was fast to recognise the essential role trade credit insurance plays in enabling trade, protecting businesses from the risk of non-payment. The Trade Credit Reinsurance Scheme was revolutionary in terms of the blanket support it provided for the industry, enabling insurers to maintain underwriting stances on limits which would otherwise have been unfeasible due to the pronounced economic impact caused by COVID-19. This ensured the lifeline of non-payment protection has remained in place for businesses.

“As the lockdown of businesses eases and we see the signs of economic recovery, with the scheme coming to an end, we are confident there will be a smooth transition for our customers. We constantly review our risk portfolio to ensure we are providing the best protection for customers and this has continued throughout the pandemic. Therefore, after the scheme ends, we do not expect to see significant changes.

“In today’s uncertain climate, trade credit insurance has never been more vital and this is increasingly being recognised by businesses who are working with us to develop robust trade strategies to seize opportunities and mitigate risk with the buffer of protection from non-payment."

Image courtesy Port of Dover

    Share Story:

Recent Stories

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021