Not all credit insurers guilty of blanket approach

Nigel Williams’ concerns on some credit insurers’ so-called ”blanket approach” to the industry, voiced at the National Panel Products Division annual dinner, are understandable but he will find a somewhat different attitude at the underwriters of the scheme supported by The Timber Trade Federation – Credit Indemnity & Financial Services (CIFS).

CIFS is known for its long-term approach to the supply of cover and for engaging with policyholders to ensure that credit limits are set at appropriate levels in the prevailing economic environment.

It would be hard to deny that the present downturn has altered the risk profile of many businesses to which the panel products sector sells; if, on a prudent view, the terms of insurance cover for some risks require adjustment, this is a situation we would expect to discuss and manage with our policyholders to minimise disruption to their trading patterns.

Within this process we acknowledge that policyholders will have a closer knowledge of their customers’ operations than we do. But equally, we expect them to discuss with us potential issues they encounter with their trading partners at the earliest possible opportunity.

The press has recently been full of claims that insurers are applying across the board risk reductions/cancellations. The TTF scheme does not deserve to be tarred with the same brush.

We note Nigel Williams plans to meet leading insurers and look forward to discussing these matters with him in the near future.

Sue Morley
Director, Client Services
Credit Indemnity & Financial Services Ltd