Majority of Companies Still See No Improvement in Credit Insurance Market

Two-thirds of companies in the construction products industry have not seen an easing in the credit insurance market over the last three months, despite the enhancements to the Government’s top-up scheme. The Construction Products Association surveyed its members and found that only a third of manufacturers and suppliers had seen an improvement in the credit insurance market and benefitted from partial or total reinstatement of cover, or higher levels of insurance cover where this had previously been reduced. The majority of companies reported that they were still struggling to get any cover at all on many of their contracts. For those companies where credit insurance had been withdrawn altogether, the government’s top up scheme was still seen as being of no value and only 6% of companies in the sample had taken advantage of it since the improvements were announced. However, a much higher proportion – nearly 40% – said they would be likely to use the ‘top up’ scheme in the future when credit insurance on their contracts was partially re-instated. CPA Chief Executive Michael Ankers said, “One of the major problems that the industry faces is that the top up scheme is due to end in December, just at the time when we hope the greater stability in the market will encourage a  more rapid reinstatement of some levels of cover where this has been totally withdrawn. As a result, nearly half the companies said it would be helpful if the government could extend the current scheme for at least another six months until the middle of next year, and we have asked the Chancellor to agree to this in his Pre-budget Report on 9 December.”