For the first time, the ABI has on 21 April published guidance governing the trade credit insurance industry. The guidance, which is not legally binding, is published in the form of a Statement of Principles outlining how trade credit insurers operate and what policyholders can expect. It sets out general principles governing:
- maintenance of cover,
- how risk is assessed and the information required for risk assessment,
- the procedure and considerations when ceasing to provide cover and
- co-operation with banks and trade financiers to continue to provide cover.
Eight major credit insurers have agreed to follow the Statement of Principles. For full details please click here