Last reviewed 8 June 2021
The Government and the Association of British Insurers (ABI) have announced that the temporary Trade Credit Reinsurance (TCR) scheme will close on 30 June as previously planned.
According to the Department for Business, Energy and Industrial Strategy (BEIS) and the Treasury, the scheme has directly benefitted over half a million businesses, providing certainty to firms across the UK and safeguarding jobs. It protected more than £575 billion of business turnover by providing around £210 billion in insurance cover.
Business Minister Paul Scully said: “The scheme allowed trade to continue flowing despite the uncertainty caused by the pandemic, and it is only right that now our economic outlook has improved and businesses are getting back on their feet, the private sector resumes its role of providing insurance cover.”
TCR was designed as a temporary solution to companies struggling to get insurance cover for transactions because of the pandemic.
It is now ending, the Minister said, in the context of a positive outlook for economic recovery in 2021, growing appetite for new business among participating insurers and the continued success of the vaccine rollout.
Participating insurers have indicated to the Government that the scheme is no longer required and they are keen to take back full underwriting control.
They have committed in the joint statement with the Government to:
continue to work closely with policy holders and their clients to understand their insurance needs, whilst proactively seeking out relevant information to inform underwriting decisions
give adequate consideration in underwriting decisions to a business’s plans for recovery and prospects for future growth, as well as the impact of the pandemic on different sectors and the ongoing nature of government support
continue to communicate the rationale behind underwriting decisions transparently and in good time.