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Credit insurance is endangering print companies as insurers become increasingly risk averse, industry experts have warned in Print Week magazine.
The warning comes after the tightening of credit conditions following concerns over debt levels. At the end of last year, Amlin withdrew from the trade credit insurance sector altogether.
Nicholas Mockett, a partner at Europa Partners, said that insurers have been withdrawing from print, and that some relatively large printers are working to cash-on-order, rather than cash-on-delivery or normal credit terms, and Merchant Paperlinx stated that while it has plenty of cover, credit insurers are taking their own view of the paper and print sectors.
According to Print Week, Malcolm Sinclair, sales and marketing director at Scottish papermaker Tullis Russell, claimed the tightening of credit insurance was wholly disproportionate with some decisions withdrawing or reducing cover smacking of knee-jerk blanket reactions.