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…

Boost for Belgian risk managers as state extends credit guarantee

Boost for Belgian risk managers as state extends credit guarantee

Boost for Belgian risk managers as state extends credit guarantee

Belgian risk managers will welcome news that its state-backed reinsurance programme created in April to maintain supply of credit insurance in light of Covid-19 has been extended until June 2021. Credendo, the state-owned Belgian export credit agency (ECA) that is now Europe’s fourth biggest credit insurance group, confirmed that the state programme will be extended until the summer to support…

EC approves Spain’s €500m credit insurance scheme

EC approves Spain’s €500m credit insurance scheme

EC approves Spain’s €500m credit insurance scheme

The European Commission (EC) has approved Spain’s €500m state-backed reinsurance scheme to strengthen the trade credit insurance market. The EC said the arrangement does not infringe state-aid rules. Under the scheme, the Spanish state will provide a reinsurance guarantee to private insurers of up to 60%. Risk and premium will be shared between the state and trade credit insurers. The…

Germany extends €30bn credit insurance bailout

Germany extends €30bn credit insurance bailout

Germany extends €30bn credit insurance bailout

Germany has extended its state-backed €30bn Covid-19 credit insurance guarantee for a further six months to 30 June 2021, after pressure from German insurance buyer association GVNW and insurance association GDV to continue the scheme beyond December. The extension will allow credit insurers to continue underwriting €400bn of insurance to help businesses protect their supply chains and prevent insolvencies, the…