A surge in trade credit insurance claims that accompanied the global financial downturn may be nearing an end, according to major insurer Atradius.

Atradius MD Australia and NZ David Huey told insuranceNEWS.com.au while the insurer is still paying relatively high numbers of claims, lead indicators such as late payment notifications have tailed off.

“We’re seeing signs that it has hit the bottom,” he said. “We’re planning for growth next year and I feel that we’ve turned a corner.”

A recent Atradius survey into the effects of the economic crisis confirmed credit insurers reduced the amount of cover and the number of buyers they were willing to write cover for during the downturn.

The insurer polled 3538 respondents in August for the global survey, including representatives of 168 Australian firms.

Some 42% of Australian firms say they have increased credit checks of their buyers while 41% have changed credit terms.

Despite the tighter market, the survey also revealed a number of firms began using credit insurance in response to the downturn.

For whole turnover credit insurance, 9% of Australian firms polled began using the cover while 16% considered using it.

Excess of loss cover was picked up by 10% of Australian respondents, while 11% considered its use.

A further 11% of Australian firms polled began using self-insurance measures with 10% saying they had considered introducing a scheme.

The survey concurs with other studies in noting Australia’s resilience to the downturn, with only Canada recording a higher measure of business confidence.

Some 66% of Australian respondents forecast an end to the downturn within a year.