18 September 2009 | Allie Anderson
The amount claimed in supply chain insurance increased 17 per cent in the second quarter of this year, figures from the Association of British Insurers (ABI) reveal.
The total paid out in claims - on policies that protect suppliers against the risk of customers going bust or failing to pay bills - reached £81 million between April and June, compared with £69 million during the same period last year.
While the amount of money claimed increased, the number of claims fell for the first time in a year to 5,661 in the second quarter of 2009. This was a decrease of 1 per cent compared with the same period in 2008.
The ABI also said claims fell between the first and second quarters of 2009 both in number and value, by 41 per cent and 39 per cent respectively.
Company liquidations totalled 5,055 during the second quarter of 2009, a rise of 39.1 per cent on the same period a year ago, according to statistics published by the government's insolvency service last month.
Nick Starling, director of general insurance and health at the ABI, said: "The economy is not out of the woods yet. Many companies may still be vulnerable, making trade credit insurance more valuable than ever.
"Insolvencies are just as likely to happen while the economy is recovering as they are when it's entering a downturn."
Last year, the value of trade supply chain insurance claims increased by 40 per cent compared with 2007, from £257 million to a total of £360 million.