Majority of companies still see no improvement in credit insurance market

13 November 2009

A survey of its members by the Construction Products Association has shown that two-thirds of companies have seen no easing in the credit insurance market over the last three months.

Commenting on the survey findings, Construction Products Association Chief Executive Michael Ankers said: 'Only a third of manufacturers and suppliers have 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 report that they are still struggling to get any cover at all on many of their contracts.

'For those companies where credit insurance has been withdrawn altogether, the government's top up scheme, which was considerably improved in August, is still of no value and only 6 per cent of companies in the sample had taken advantage of this since these improvements were announced. However, a much higher proportion – nearly 40 per cent - said they would be likely to use the 'top up' scheme in the future when credit insurance on their contracts is partially re-instated.'

Ankers continued;

'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stability in the market will encourage a more rapid reinstatement of some levels of cover where this has been totally withdrawn.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.

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