Rates in the trade credit insurance market have seen no real changes, an expert has said, as interest in the cover has picked up.
As the dust settles from the busy June renewal period,
Mark Hoppe, managing director of the Australian branch of
Atradius, said that the market has seen an uptick in interest from varying sectors.
“Lots of new customers and new entries to the industry are asking for proposals and pricing which is a bit of sign that there is a little bit of uncertainty out there and also people are looking at different ways to grow their business,” Hoppe told Insurance Business.
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Hoppe noted that the recent high profile collapse of Network Ten, alongside other closures in the fashion industry, have helped boost the profile of the product.
These higher profile cases in turn offer brokers an opening to discuss the cover with their clients regardless of industry sector. As Hoppe said, they offer an opportunity for brokers to discuss how credit cover can be used not only to protect a business, but to help it grow.
With the tax year recently beginning Hoppe noted that now is the time to contact clients on trade credit cover as businesses look ahead to a new year facing new challenges and opportunities.
“If people are running off a financial year they may be looking at costs involved for credit insurance over the next year but also they are sitting and looking at how much they want to grow in the next 12 months,” Hoppe said.
“For brokers, I think that is an opportunity to talk about how credit insurance can be a tool to help them grow.”
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