Insurance companies pay bills later - Experian

Insurance companies are paying their bills two day later on average than a year ago, according to a new Experian survey.

The company’s Late Payment Index for the second quarter of 2012 shows that the industry is paying its bills 20.24 days on average after term, compared to 18.29 during the same three month period in 2011.

There is a small improvement on the first quarter of 2012, however, when bills were paid an average of 21.06 days late.

The current national average for businesses is 23.46 days.

Max Firth, UK managing director for Experian’s business information services division, said: “This is the third consecutive quarter of improving payment performance, which means that cash flow among firms is getting better.

“Much of this improvement has been led by the UK’s largest businesses.  There is, however, only so much improvement that can take place among these firms.  The very nature of the way large businesses are structured – hundreds of suppliers, multi-sites, multi-departments, stringent processes – makes it impossible for them to pay as fast as their smaller more flexible counterparts.

“It is vital that smaller firms think about their collection strategies, and take on board some of the strategies employed by their larger counterparts to help ensure they get paid on time.  This includes monitoring the payment performance of their customers to ensure early signs of deterioration are caught before it is too late.”