The temporary Trade Credit Reinsurance (TCR) scheme that helped struggling supply chain firms secure insurance protection during the pandemic will close at the end of June, it has been confirmed.
In a statement, the government and the Association of British Insurers said the scheme will close on 30 June as planned.
The TCR scheme was designed as a temporary solution to companies struggling to get insurance cover for transactions because of the pandemic.
The government says the TCR has directly benefitted over half a million businesses but is now ending in the context of a positive outlook for economic recovery in 2021.
Participating insurers have indicated to the government that the scheme is no longer required and they are keen to take back full underwriting control.
The government says it will work with participating insurers to ensure there is a smooth transition to the private sector resuming its normal role of providing cover.
Chris Wilford, Head of Financial Services Policy at the Confederation of British Industry, said:
‘There is growing concern amongst businesses about the future of the Trade Credit insurance market following the end of the government’s guarantee at the end of June.
‘It is vital that there is clear guidance on what businesses need to do to ensure coverage beyond the end of the TCI guarantee to smooth the transition towards a normalised market. The CBI welcomes the joint statement by the government and insurance industry and will continue to actively engage to find a solution.’