Trade credit insurers more risk-averse but government support helps, broker Aon says

Credit insurance companies are decreasing the extent of the cover they offer, and are requesting more information from clients, in the wake of the Covid-19 pandemic, but ultimately the sector has been well supported by government schemes, according to Dutch specialist insurance broker Aon.

Trade credit insurance gives protection to companies against bad debts caused by the insolvency or protracted default of their business customers, concerning the sale of goods and services on credit terms in both domestic and export markets. “The situation is less negative than at the beginning [of the pandemic]. But still, if we look at the effects - especially in sectors that have more [insolvency] risk, such as aerospace and automotive - the credit insurance market is more reluctant at this moment to sign credit limits,” Daniël Göbel, Aon’s broking director, global clients, said during a webinar on Friday September 11, hosted by the Minor Metals Trade Association (MMTA). The credit limit is...

Published

Cristina Belda

September 15, 2020

17:15 GMT

London