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2012, May 24
2012, May 24 International Credit Insurance & Surety Association (ICISA) members indicate a general positive trend in increased trade and improving results on insured risks.
According to ICISA, trade credit insurance claims have decreased by more than 55% compared to 2009. Trade credit insurance claims ratio improved from 87% in 2009 to 36% in 2010.
ICISA also finds that surety members report an increase in premium of 10% and drop in claims of almost 70% in comparison to 2009. Surety claims ratio was 23% in 2010 (77% in 2009).
Meanwhile, claims numbers continue to be low and that a fragile economic recovery might hamper positive business outlook for trade credit insurance.
“The general market outlook is seen as positive, after a faster than expected recovery of our industry from the crisis. And we will continue to support our clients at this juncture," says ICISA President Joaquín de la Herrán.
Although insolvency rates continued to be relatively high in 2010, ICISA members reported improved results on their underwritten risks.
Increasing sales volumes of Trade Credit Insurance customers were matched by a higher risk appetite. Claims dropped significantly in 2010 compared to 2009 and are expected to stabilize at this level in 2011.
One of the lessons learned from the global financial and economic crisis was that policyholders expect greater transparency from their insurer. By implementing new and improved credit management tools, underwriters are better able to meet these expectations.
While Surety premiums continued to increase, claims have dropped by almost 70% compared to 2009. However, claims are still more than double than reported over 2007. The claims ratio over 2010 is reported at 23%, which is significantly lower than 2009 and closer to the pre-crisis
level of 16% in 2007.
On average the business outlook 2011 is positive, but fragile. “The in general positive business outlook of our industry could be negatively influenced by external factors. In general our members expect to consolidate the positive results of last year," de la Herrán explains.
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What about the car insurance business? How are the claims behaving for this line of business? Such information is important as it shows how the infrastructure is doing and how safety behind the wheel has improved or not.