Temporary reinsurance backstop

Euler Hermes, the world leader in trade credit insurance, welcomes the plan announced by the UK government to provide support to the private sector by offering to guarantee transactions insured by trade credit insurers.

Euler Hermes’ objective is to protect its clients against the risk of non-payment and provide them the confidence to trade with their clients. The current crisis brings with it a significant increase in late payments and additional risks that businesses may face unpaid invoices as a number of buyers present heightened levels of risk of non-payment and deteriorated credit worthiness in the UK and around the world.

Milo Bogaerts, chief executive of Euler Hermes UK and Ireland, said: “Ensuring UK businesses can continue to trade in confidence while they recover from the effects of the crisis is essential. This temporary reinsurance support creates a protective shield for credit-insured clients during this crisis. It will ensure that essential coverage remains in place and liquidity maintained across the supply chain.”

Euler Hermes will continue to work alongside the UK government, the Association of British Insurers (ABI) and other commercial trade credit insurers to agree the detail of the scheme to help businesses restart the UK economy as it emerges from lockdown.