The Chancellor is expected to deliver some much-needed good news to retailers in his Budget tomorrow revealing a temporary scheme to ensure a £5bn provision for supply chain insurance.
A deal was struck yesterday between the Government and the world’s largest credit insurers Euler Hermes and Atradius and Coface to provide guarantees.
The scheme will come into effect May 1 but will only be available to companies who have had their cover cut since April 1. Those who have had cover withdrawn altogether will not be included in the scheme as they are still seen as too high a risk .
The business department will only make a small loss on the deal however as companies will have to pay a 2 per cent levy on assets they want to insure for six months.
Insurance trade body the Association of British Insurers has published a list of rules to outline how credit insurers should operate. The ABI has issued a “Statement of Principles” on the sector, according to The Daily Telegraph. The list outlines how the insurers operate and what can be expected from them.
In the last three months the number of trade insurance claims rose 51 per cent to 8,366.
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