As from 1/1 Amlin will be out of the credit insurance market (Source: FT).
While they only have less than 5% market share, it’s a further indication of difficulties in the sector, and perceived difficult times ahead for the wider economy.
CEO, Charles Phillips, said that while getting reinsurance for credit insurance was becoming more difficult, the underlying business is going to be tough to make money from in the longer-term.
This can’t be the last of this sort of announcement, and I suspect that the rising cost of reinsurance is going to become a growing feature of this renewal season. Of course, that is better news for reinsurers, though.
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