More companies take up trade credit insurance

The number of companies taking out credit insurance increased by 10% during 2007, according to figures from the ABI (Association of British Insurers).

This is the third consecutive year that the market has grown, with a 40% rise since 2004. This shows that more companies are relying on trade credit insurance to help them navigate risk and protect them during an economic slowdown.

Nick Starling, the ABI's Director of General Insurance, said: "It is positive news that there is a greater awareness amongst small businesses as to the value of trade credit insurance during periods of increased risk and volatility. The economic slowdown has driven the number of policies up to near-record highs.

"While the economy is in decline, trade credit insurers expect to pay out more claims during 2008, as business insolvencies rise."