Economic Report from Encharter Insurance 1st Quarter 2010

The recovery of current world economic conditions continues to be fragile after a positive second half of 2009. We will see 2010 as a year of peaks and valleys between good and bad economic indicators. Many countries will see a high level of insolvencies during the first half of 2010 and no real improvement for the second half of the year. Those countries where there will still be a rise of insolvencies will be centered primarily in Europe, but we will begin to see a decline of insolvencies in the United States, Canada, Brazil and a few Asian countries.

What does this mean to the average buyer of Trade Credit Insurance from Encharter Insurance? We will see continued pressure to raise premiums from all the Trade Credit Insurance carriers such as Euler Hermes ACI, Coface North America, Atradius, FCIA, Chartis and others. 2008 and 2009 was good and bad for the industry and its clients; the good were indicated by increased recognition of the value of Trade Credit Insurance, whereas the bad were indicated by higher claims resulting in higher premiums and reductions in coverage. This put a bad taste in the mouths of many current and prospective entrances into the world of Trade Credit Insurance.

The good news is that for companies looking at credit insurance for the first time in 2010 and 2011, it will be easier to get the coverage needed on customers still on shaky ground and pricing will have stabilized. There will be an increase in competition among the insurance companies because they must grow their top-line after the last 2 years of shrinking revenues and higher expenses. I’m confident in the strength of these companies and if they made it through the worst economy since the end of World War II, I think they will be around to support and protect business’ sales and profitability for many years to come.

If you would like to learn more about purchasing Trade Credit Insurance from Encharter Insurance, call Eric Voegtle at 888-865-1244. As an expert in the field, he would like to talk with you about your options. You can also visit our virtual insurance office at www.encharter.com to get a FREE quote on Commercial Auto Insurance, FREE quote on General Liability Insurance, and any other business insurance needs you may have. And the agents in our insurance office in Amherst MA, our insurance office in Lexington MA, our insurance office in Reading MA, and our insurance office in Watertown CT would like to speak with you!

At Encharter, “It’s all about protecting you!”