Construction and manufacturing sectors borrow most to fund cover

The construction and manufacturing sectors are the most likely to rely on credit to help pay for insurance, according to new analysis from Premium Credit.

Construction firms accounted for more than 8% of all net advances from Premium Credit last year, while the manufacturing sector made up 7%. This was followed by transport, professional and scientific services, and retail and wholesale. The five sectors together accounted for nearly a third (31%) of all net advances from Premium Credit.

Premium Credit’s data shows SMEs are increasingly borrowing to pay for insurance – total net advances of premium finance for commercial insurance increased by over 11% in 2020 compared with the previous year even though the number of policies only rose marginally.

Independent research conducted in April by Consumer Intelligence among 291 SMEs shows a similar trend, suggesting they are borrowing more to fund business insurance with owners most likely to rely on credit cards. Nearly one in four SME owners and managers who use credit increased the amount they borrowed in the past year, with average additional credit coming to nearly £1,300.

Image courtesy Siemens

    Share Story:


Cyber risk in the transportation industry
The connected nature of the transport and logistics industries makes them an attractive target for hackers, with potentially disruptive and costly consequences. Between June 2020 and June 2021, the transportation industry saw an 186% increase in weekly ransomware attacks. At the same time, regulations and cyber security standards are lacking – creating weak postures across the board. This podcast explores the key risks. Published April 2022.

Political risk: A fresh perspective
CIR’s editor, Deborah Ritchie speaks with head of PCS at Verisk, Tom Johansmeyer about the confluence of political, nat cat and pandemic risks in a world that is becoming an increasingly risky place in which to do business. Published February 2022.