What a difference 12 months makes; last May we were right in the thick of the pandemic and the economic outlook was looking bleak. Fast forward to now and the Australian economy has recovered at a pace many wouldn’t have thought.
The trade credit insurance market was anticipating a large increase in insolvencies. Many were focused on increased loss ratios; however, they are now more comfortable with the stability that is presenting itself in Australia and the APAC region.
NCI have been able to negotiate more credit limit cover, which will benefit current and potential customers seeking trade credit insurance.
We have seen an increase in the demand for our NCI Top-Up cover also. This comes as a result of increased trade and growth. Unprecedented demand from Government stimulus in certain industries (home building as an example), will no doubt lead to some supply and demand issues resulting in tougher cashflows for some.
As always, if you have any questions relating to any of these topics or the general economy, NCI are happy to provide additional information to assist you in navigating 2021.