Aon blasts government’s credit cover
Aon Trade Credit criticised the government’s “failed” credit insurance scheme this week as inadequate for larger companies.
The company called on the government to increase the cover limit to £10-£15 million from the current limit of £1 million.
It added that the UK government should follow the example of the French government by not limiting cover based on multiples of a firm’s existing credit limit.
“The government’s once promising top-up credit insurance scheme has failed to attract a significant take up,” said Susan Ross, Aon Trade Credit director.
In many cases “there is no cover in the first place for the government scheme to top up,” she said.
The “£1m credit limits are only suitable for smaller businesses,” she added.
“Increasing the credit limits to £10-15m would enable larger companies to purchase cover and obtain much needed finance.
“This would particularly support the advertising, automotive and consumer electronics sectors where distributors would be left with bad debt in the event of a customer going insolvent.”
Category: Aon News, Business Insurance News, Companies News, Insurance News
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