Atradius covers 30,000 firms

Atradius has increased credit insurance cover on 30,000 firms by £1bn after they handed over up to date financial information, the Minor Metals Trade Association claims.

It told its members that Atradius was positive about the prospects for 2010, but stressed the need for an open dialogue between all parties and the ongoing provision of up to date information by company’s they were writing cover on including recent management accounts.

The Minor Metals Trade Association (MMTA) Credit Insurance Focus Group met credit insurer Atradius on 16 March to discuss the impact of the withdrawal of cover on the customers of its members during 2008 and 2009 and future prospects for 2010.

Underwriting changed

Atradius explained that the liquidity crisis and the subsequent rapid deterioration in the global economic environment in the second half of 2008 led them to reassess their underwriting methodology and reduce exposure across a range of trade sectors and markets.

The metals market in particular had been badly affected, Atradius told the MMTA).

The MMTA queried the composition of Atradius’ “metals market” and took the opportunity to emphasise the distinction between the sectors that its members serviced, which were not as hard hit as general steel and construction during the recent downturn.

No cherry picking

The MMTA stressed that its members expected the underwriting market to support a portfolio of risks as historically had been the case on whole turnover policies and not to "cherry pick" providing limits only on low risk blue chip companies while refusing cover on perceived higher risk companies.