Downgrades and rising defaults ahead as Covid-19 strains credit in 2021

Downgrades and rising defaults ahead as Covid-19 strains credit in 2021

Downgrades and rising defaults ahead as Covid-19 strains credit in 2021

Covid-19 will continue to put a “heavy strain” on global credit conditions in 2021, with more ratings downgrades and an increase in defaults likely, says S&P in a new report. Its baseline assumption is that Covid-19 vaccines will become widely available by mid-year, but containment of the pandemic will still be uneven worldwide. S&P adds that until the vaccines start…

Supply chain risks to hit hard in France as insolvencies rise

Supply chain risks to hit hard in France as insolvencies rise

Supply chain risks to hit hard in France as insolvencies rise

As some believe that vaccinations and economic recovery will bring their companies some peace of mind in 2021, a French consultancy has warned the worst is yet to come for supply chain risks. According to Laurent Giordani, a partner at Paris-based KYU Associés, even companies that have managed to avoid supply chain disruptions during the Covid-19 pandemic may struggle later…

Specialist Risk Group acquires trade credit specialist

Specialist Risk Group acquires trade credit specialist

Specialist Risk Group acquires trade credit specialist

Insurance intermediary Specialist Risk Group (SRG), has acquired Bristol-based trade credit specialist, The Channel Partnership. The senior team and staff of The Channel Partnership will join SRG’s retail business, Specialist Risk Insurance Solutions (SRIS). Tom Rolfe, director at The Channel Partnership, will report to Lee Anderson, managing director of SRIS. Mr Anderson said: “The Channel Partnership makes an excellent addition…

Trade credit fallout from pandemic to worsen in 2021

Trade credit fallout from pandemic to worsen in 2021

Trade credit fallout from pandemic to worsen in 2021

Despite positive news on vaccinations, the outlook for trade credit risk remains uncertain and insolvencies are predicted to rise significantly in 2021, according to Atradius. The pandemic has weighed heavily on the world’s economy, with Atradius forecasting a 3.9% fall in global GDP in 2020 and a contraction in global trade growth of about 10%. However, as Covid -19 containment…

Greenberg sticks by insured Covid-19 loss estimate of up to $80bn

Greenberg sticks by insured Covid-19 loss estimate of up to $80bn

Greenberg sticks by insured Covid-19 loss estimate of up to $80bn

Despite some experts reducing their insured pandemic loss figure, Chubb’s CEO Evan G Greenberg said the insurer is sticking to its estimate of industry-wide claims between $70bn and $80bn. He also warned that the next pandemic-type catastrophic loss is likely to be cyber-related. According to results service Seeking Alpha, Mr Greenberg said about half of insured Covid-19 losses have already…

AXA XL creates political risk leader role for Europe

AXA XL creates political risk leader role for Europe

AXA XL creates political risk leader role for Europe

AXA XL has named Caroline Tran as its first product leader for political risk, credit and bond in Europe. In the new role, Ms Tran will develop underwriting strategy in Europe and will be responsible for AXA XL’s political risk, credit and bond portfolio in France. Ms Tran joins AXA XL from Atradius, where she was deputy head of special…

Atradius says credit outlook is bleak for Bulgaria’s shipping and transportation sector

Atradius says credit outlook is bleak for Bulgaria’s shipping and transportation sector

Atradius says credit outlook is bleak for Bulgaria’s shipping and transportation sector

Trade credit insurer Atradius has forecast a bleak credit outlook for the shipping and transport sector in Bulgaria, with several other sectors – including construction, services, steel and textiles –  assigned a poor outlook. The country review comes as the Bulgarian economy looks to recover from a 4.3% contraction in 2020, driven by the impact of Covid-19. Atradius said credit…

Airmic urges insurers to improve underwhelming solutions in wake of trade credit scheme extension

Airmic urges insurers to improve underwhelming solutions in wake of trade credit scheme extension

Airmic urges insurers to improve underwhelming solutions in wake of trade credit scheme extension

Airmic has welcomed the extension of the UK’s government-backed trade credit reinsurance scheme, but told CRE that many buyers remain “underwhelmed” by the products on offer from the market and urged insurers to fully embrace the intent of the state guarantee to bolster risk appetite and develop better solutions, rather than de-risk portfolios. The UK has followed moves by other…

UK extends trade credit scheme to end of June

UK extends trade credit scheme to end of June

UK extends trade credit scheme to end of June

The UK has followed moves by other European governments and extended its trade credit insurance backstop for a further six months as the Covid-19 pandemic continues. The UK’s £10bn Trade Credit Reinsurance Scheme was first launched in June 2020 and guarantees trade credit insurance to support the insurance market, business and supply chains disrupted by the pandemic. Under the scheme,…

Spanish brokers see light at end of tunnel for risk managers

Spanish brokers see light at end of tunnel for risk managers

Spanish brokers see light at end of tunnel for risk managers

Spanish companies must gear up for a difficult series of renewals in 2021, but negotiations may be not as traumatic as in the past two years, according to leading Spanish brokers. Even though buyers face a less dramatic hard market than their peers in other European countries, things are dire for Spanish firms in some lines, such as D&O and…

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