Insurance News Archive

'Too soon to tell' for govt credit insurance scheme

Written by Dan Winters

It is too soon to tell whether the government's credit insurance scheme is working, according to an expert.

Eric Galbraith, chief executive of the British Insurance Brokers Association, says that he sees the initiative as a "top-up facility" rather than a guarantee scheme, as the government calls it.

"Some of our members have raised some issues about how they have got additional work to do because of it," he explains.

Mr Galbraith says that BIBA has discussed its members concerns with the Department for Business Enterprise and Regulatory Reform, adding that it is "definitely" too soon to decide if the scheme has been a success.

However, he acknowledges that for those businesses that have the capital in place, the initiative will help them get the right level of credit insurance cover.

Last month, a survey of large retailers and small and medium-sized businesses found that half of the former and over 40 per cent of the latter said withdrawal of credit insurance had undermined their ability to trade.

21 May 2009