Coronavirus: Trade credit insurance sector may see rise in claims

Non-life insurers are keeping a close watch on the evolving coronavirus situation and if economic activity remains subdued amid major disruptions in the supply chain, they may see a spurt in claims arising from the trade credit insurance segment.

The spread of coronavirus and the subsequent lockdown has disrupted the supply chain which may lead to a situation where buyers fail to pay their dues to manufactures or make delayed payments.

Trade credit insurance covers a supplier of goods and services against the risk of non-payment by its customers because of wilful default or insolvency. The repaying capability of the customer depends