Insurance claims for bad business debts have hit record levels, trade credit insurance broker NCI says.

Some 462 claims were made by businesses during the second quarter of this year – a jump of 50% compared to the first quarter.

Most the 202 claims in May came from the building and construction industry. The number of overdue debts has dropped slightly from 5718 to 5557, and collection actions have dropped from 881 to 859.

The total value of claims received rose $6.3 million to $34.1 million, with an average claim value of $73,000. The rise in claims is also partly due to an increase in more businesses taking out insurance policies, NCI says.

The result correlates with a historically high number of overdue debts experienced by businesses. NCI warned last month that worsening trade credit conditions led to the number of overdue debts increasing by 12% over the final quarter of last year to 5718.