Atradius fortifies UK cover

Underwriter says move will facilitate more than £1bn in extra trade

13,000 UK firms have seen credit capacity extended, Atradius claims

Credit insurer Atradius claims a review of its underwriting strategy has enabled it to boost credit insurance capacity on 13,000 UK firms.

The firm – which has recently reduced its exposure to some high-profile names in the channel – said the move could facilitate more than £1bn of extra trade in the coming months.

The insurer failed to give any specific mention to the IT sector in the accompanying release, highlighting construction and engineering as two sectors that have seen particular improvements.

Other sectors that will reap the benefits include automotive, ceramics, clothing and footwear, furniture, metals, paper, print and publishing, hotels and catering, textiles and timber.

An Atradius spokesperson admitted the electronics retail sector remained one of the hardest hit by the recession.

Earlier this year Atradius requested detailed financial information from about 50 channel firms.

The insurer said the increase in capacity follows an improvement in the sourcing of up-to-date financials which enabled it to identify which firms are performing well in each of its sectors.

Shaun Purrington, director of Atradius UK and Ireland, said: “For some time we have stated that cover would increase if we could to see improvements in the sharing of information by businesses.

"We are delighted to have seen a significant shift in business practices to this effect. This will be a welcome boost for our customers as they grapple with credit risks in an uncertain environment.”