The service will enable companies to continue trading effectively with suppliers and customers during the recession, said the broker
Marsh has launched a new service to help companies stabilise or improve the credit limits issued by insurers.
According to Marsh, the new service helps clients gain more control over the underwriting decisions that affect their businesses and offers the opportunity to pre-empt an insurer’s decision to restrict or cut cover.
As part of the solution, Marsh said its specialist trade credit insurance team would:
• Work with clients to identify critical suppliers and their relationships with the credit insurance market;
• Determine which insurers to engage with and the level of priority to be attached to each supplier;
• Identify and facilitate engagement with the appropriate insurers, and where appropriate explore the option of the Government-supported top up scheme;
• Help provide information that meets an insurer’s minimum requirements in an easily assimilated and clear format.
Tim Smith, head of UK and Ireland Trade Credit at Marsh, said: ‘In recent months credit insurers have hardened their attitude, due to an increasing number of claims and worsening economic conditions. As a result, it is becoming increasingly difficult for companies to obtain optimum level of cover and, in many instances, those who insure their debts are finding that cover is being withdrawn on their customers.’
He added: ‘There is increasing evidence that this is having a negative effect with suppliers, who may refuse to supply on open credit, shorten payment terms or demand deposits or even cash in advance. For buyers, they may in turn suffer from shortages, have supply chain issues or have unexpected or unplanned burdens on their cash flow.’