Miller's Andrew Perry says the market has "undergone a seismic shift"
The recession has exposed how vital trade credit is in keeping companies in business, Andrew Perry, trade credit specialist at insurance broker Miller Insurance Services told the Airmic conference today.
“At the same time, the insurance market for these risks has undergone a seismic shift in the way it operates. The speed of the downturn in the last two years took everyone by surprise. Whole turnover carriers in particular had to withdraw cover rapidly in order to avoid being downgraded, and reinsurers also started to ask some tough questions of all their insureds.
“The result of this withdrawal is that many whole turnover underwriters have lost the trust of the insureds. Although the market has settled slightly, there is no doubt that there is a still a lack of capacity for certain buyers – whether because of the type of business they are in, or perhaps concerns about the strength of their balance sheet.
“The objective of our workshop is to look at trade credit both from internal and external perspectives; to talk about how businesses can co-ordinate their own activities to maximise their credit profile and what other options are available from third parties.”
