|
|
Article: Credit crunch fuels rush for coverage; Trade credit insurers see rise in demand as bankruptcies grow.
- Article from:
- Business Insurance
- Article date:
- April 13, 2009
- Author:
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Byline: ROBERTO CENICEROS
The worldwide economic downturn is driving demand for trade credit insurance, but buyers are finding a hardening market for the coverage as insurers respond to a sharp rise in claims, several industry experts say.
As more companies file for bankruptcy, more large firms are seeking trade credit insurance protection for domestic and international accounts receivables, but they face restricted capacity and rates that jumped at least 30% for first-quarter renewals, experts say.
In addition to tightening terms and raising prices, some monoline trade credit insurers earlier implemented policy conditions that allow them to ...