Credit insurance affected by the crisis

Following the release of the 2008 results, credit insurers are reviewing their priorities. Despite an increase in their turnover, the insurers are sustaining a loss ratio that is visibly higher than that of 2007. Coface’s and Atradius’ loss ratio have respectively risen from 49% and 42% in 2007 to 73% and 97% in 2008.

To face the crisis, insurers are compelled to forfeit some sectors which are deemed to be risky. Unfortunately, the 2009 results could turn out to be even more unfavourable.