On 30 December 2020 it was confirmed that the Government backed Trade Credit Reinsurance Scheme will be extended by 6 months to 30 June 2021.
The extension is welcome relief for businesses as the support scheme is allowing trade credit insurers to maintain credit coverage where supply chains have been impacted by Covid-19.
The insurers who continue to participate in the scheme are:
- American International Group UK Limited
- Atradius UK
- Coface UK Branch
- Credendo – short-term non-EU risks
- Euler Hermes UK, a branch of Euler Hermes SA (NV)
- Markel International Insurance Company Limited
- Nexus Trade Credit
- QBE UK Limited and QBE Europe SA/NV
- Zurich Insurance plc
Milo Bogaerts, chief executive of Euler Hermes UK and Ireland, said: “This is an important signal that both the government and the insurance industry continue joining hands to protect businesses. By reducing the risks associated with late or non-payment we help our customers boost liquidity and preserve intercompany credit, and hopefully support long-term economic recovery when it comes.”
Graham Walsh, Senior Policy Advisor at the Association of British Insurers said: “Maintaining trade credit insurance cover between suppliers and their clients is a key component in enabling the UK economy to overcome some of the challenges arising from the pandemic. We’re pleased to have been able to help the Government agree an extension to the scheme, meaning UK businesses can continue to benefit from a greater level of protection from trade credit cover than might have otherwise been possible.”
For information on how this extension may affect your business please contact Hannah Lyon-Wall, Director at FinCred IS Hannah_lyonfirstname.lastname@example.org +44(0)1732 749754.