Global demand for trade-credit insurance is surging amid slow payment patterns and concerns of defaults on trade obligations, according to Chubb Corp.'s trade-credit insurance group.
Pater Aitken, a Chubb vice president and co-manager of the trade-credit group, said the group saw applications for trade-credit insurance rise nearly 40 per cent over the past year. "These trends are driving corporate management to look for ways to protect their company's accounts receivable, and increasingly companies are turning to trade-credit insurance," said Aitken in a statement.
The surge in demand has prompted Chubb's Canadian affiliate, Chubb Insurance Company of Canada, to obtain licenses to provide trade-credit insurance in Canada, said Aitken. The coverage will be marketed in the Canadian provinces of Ontario, British Columbia, Saskatchewan, Alberta, Manitoba and Quebec. Chubb Canada's trade-credit effort will be managed from its offices in Toronto.
