MMTA meets with Atradius
The Minor Metals Trade Association (MMTA) Credit Insurance Focus Group met credit insurance provider Atradius on 16th March to discuss the impact of the withdrawal of cover on the customers of its members during 2008 and 2009 and future prospects for 2010.
Atradius explained that the liquidity crisis and the subsequent rapid deterioration in the global economic environment in the second half of 2008 led them to reassess their underwriting methodology and reduce exposure across a range of trade sectors and markets. The metals market in particular had been badly affected.
The MMTA queried the composition of Atradius’ “metals market” and took the opportunity to emphasise the distinction between the sectors that its members serviced, which were not as hard hit as general steel and construction during the recent downturn. The MMTA stressed that its members expected the underwriting market to support a portfolio of risks as historically had been the case on whole turnover policies and not to "cherry pick" providing limits only on low risk blue chip companies while refusing cover on perceived higher risk companies.
Atradius advised that they have increased available cover on 30,000 businesses by £1bn in recent months often as a result of businesses responding to requests for up to date financial information. Atradius was positive about the prospects for 2010, but stressed the need for an open dialogue between all parties and the ongoing provision of up to date information by company’s they were writing cover on including recent management accounts.
Both parties viewed the meeting as constructive and agreed that follow up meetings will take place. The MMTA delegation comprised Roy Walton of Darton Commodities, Neil Poulter of Wogen, Steve Hawkins of Lipmann Walton, Phil Simmons and Rob Bolton of specialist credit insurance broker AON and MMTA Executive Roland Chavasse. Atradius was represented by Shaun Purrington Regional Director, Commercial UK & Ireland, and Simon Rockett Senior Manager, Risk Service UK & Ireland.
