The number of claims on credit insurance rose by more than half in the 12 months leading up to the fourth quarter 2008, it has been found.
The Association of British Insurers (ABI) published figures yesterday (April 21st) showing that, in the final quarter of 2008, 8,366 claims were made.
Compared to the 5,540 made in the fourth quarter of 2007, this represents a 51 per cent increase.
Nick Starling, the ABI director of general insurance and health, said: "[The ABI's figures] reaffirm the important role that insurers have in supporting businesses, especially small and medium-sized enterprises, during these turbulent economic times.
"Through their risk management processes, trade credit insurers help protect SMEs by warning them of major weaknesses in the companies they supply and by protecting them against unexpected losses."
Businesses can also take steps to protect themselves from failing suppliers or clients, by outsourcing the management of their supply chain to a supply chain management company, which could use its experience to strike deals with back-up suppliers.
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