Trade credit insurance giant Atradius has initiated further cover in the retail sector, in a signal that recovery is underway.
Over the past month, Atradius opened up more than €2bn (£1.7bn) of additional cover across the UK and said this would have a “positive impact” on more than 3,500 retail-related companies in unspecified sectors.
One supplier said: “Trade credit insurance is one of the things the Government has been concerned about. If there is more available credit, then it will stave off recession and ease the recovery. The market rate for providing the service is better. It makes sense for the [insurers] to offer more cover.” He added that, in a return to pre-recession tactics, the insurers had began poaching each other’s clients.
Marc Henstridge, head of risk at Atradius, said: “We have continued to open up cover on what we consider to be viable risks. This has been driven by our ability to make logical decisions based on up-to-date financial information.”