Despite enduring a rough ride during the credit crisis, trade credit insurance and reinsurance are still very much in demand, as the events of 2008-09 still affect supply chains globally, Intelligent Insurer reports.
To much of the insurance and reinsurance world, the credit crisis of 2008-09 is but a distant memory. Insurers and reinsurers have much more pressing issues to contend with—major global catastrophes, the implementation of Solvency II, a soft market.
But some parts of the industry remain haunted by the events of 2008- 09, when credit disappeared, almost overnight, from vast swathes of the banking world and financial markets. Specifically, trade credit providers say they are still suffering the effects of the crisis.
“The biggest issue is that during 2008-09, a lot of trade credit insurers cancelled credit limits midway through the policy year for insureds,” says Mike Holley, chief executive of Equinox. “This led people to liken it to an umbrella that is there when you don’t need it, but when it rains the cover is taken away.”
Insurance, Reinsurance, Trade credit insurance