Businesses now more eager for credit insurance in Asia

Demand for credit insurance has increased sharply in Asia as more companies in the region seek to protect themselves from the impact of a default by trading partners.

According to the global insurance broker, Marsh, demand for credit insurance has jumped by over a fifth during the last quarter, compared with the same period a year previously.

Dow Jones reports Richard Green, Head of Marsh’s trade credit and political risk practice in Asia, as having said: “Interest is coming from industries such as consumer electronics, chip and auto-part manufacturers, all of which are core sectors in Asia.”

He adds:  “Economic worries, particularly in Europe, are causing Asian suppliers to reassess the ability of their customers to pay.”

Marsh says that requests for trade credit insurance quotes by Singapore companies were up by 30%, while those from Hong Kong were up 20%.