Having been slammed with a 95% increase in the amount paid out in trade credit claims in 2009, things are beginning to look up for British insurers.

Figures released by the Association of British Insurers (ABI) last week revealed that 22,791 trade credit insurance claims were made in 2009, with the total amount paid in claims rising from £164 million ($271 million) in 2008 to £320 million ($530 million) in 2009.

While this provided welcome relief for British businesses suffering from the global financial crisis and the ongoing local liquidity squeeze, ABI Director of General Insurance and Health Nick Starling says indications are that 2010 will be kinder to insurers.

“While trade credit insurers paid out a record amount in claims to policyholders during 2009, Q4 marked a significant improvement with the number of new claims received down 23% on previous quarter,” he said.

“This is consistent with the end of the downward trends observed in various sectors of the economy and the corresponding reduction in levels of corporate failures observed in Q4 2009.”

In total 9213 claims were made in the first quarter of 2009, followed by 5661 in the second quarter, 4489 in the third quarter and 3428 in the fourth quarter.

Gross claims paid totalled just over £60 million ($99 million) for the first two quarters, £124.6 million ($206 million) for the third quarter and £74.5 million ($123 million) for the fourth quarter.

Mr Starling says trade credit insurance will continue to be important in 2010.

“The outlook for 2010, although improved from 2009, remains highly uncertain, which reinforces the importance of protection and risk management services provided by trade credit insurers.”