John Glen, Economic Secretary to the Treasury, has announced that the UK Government will guarantee business-to-business transactions supported by trade credit insurance. The guarantee will enable trade credit insurers to maintain coverage during the coronavirus (COVID-19) pandemic.
The guarantee will be delivered through a temporary reinsurance agreement with insurers currently operating in the market. The guarantees will cover trading by domestic firms and exporting firms and the intent is for agreements to be in place with insurers by end of this month. The guarantee will provisionally last until the end of 2020.
The details of the scheme are currently being worked out between the UK Government, industry and the insurance sector.