Smooth transition to GTCRS ends
There has been a smooth transition for customers after the close of the Government Trade Credit Reinsurance Scheme according to Atradius (www.atradius.co.uk).
Introduced to support the industry during the pandemic, the scheme came to an end on 30 June. Six weeks on, Atradius reports the handover process has run as expected with a continuation of limits for customers and growing levels of cover.
“The Trade Credit Reinsurance Scheme was only ever designed to be a temporary measure and while it was very much a welcome initiative, we were ready for its closure which came at the right time. Atradius was well prepared to take back full underwriting control once again and we can confirm this has been the case with a smooth transition for our customers,” says Stuart Ramsden, Regional Director of Atradius UK and Ireland.
“Atradius continually reviews its risk portfolio to ensure we are providing the very best protection for customers. If an instance arises where the risk of non-payment is overwhelming, we warn customers so preventative action can be taken. In the minority of cases where this has happened during the pandemic, affected customers were communicated with well in advance so there was no sudden shock at the end of the government scheme. In fact, Atradius is underwriting higher cover levels proportionate to the level of trade now than prior to the pandemic.”
“The scheme was an absolute game changer for the industry, enabling insurers to maintain underwriting stances on limits which would otherwise have been unfeasible due to the pronounced economic impact caused by Covid-19. This action kept businesses trading but also instilled confidence at a time of overwhelming uncertainty. The fast implementation of such a comprehensive scheme with significant financial backing evidences just how important trade credit insurance is to protect businesses,” continues Ramsden.
“While credit insurance has been around for more than 100 years, businesses are increasingly understanding its value and relying on it to trade safely. In return, as an insurer we are continually evolving to ensure we provide a first-class service in partnership with our brokers and support customers as they face new and uncertain risks no matter what lies ahead.”
The scale of its support and the quick roll out of the scheme has provided a lifeline for businesses as well as underpinning the value of trade credit insurance.