By Sukhbir Kaur, Underwriter
(Estimated reading time: 1 minute 35 seconds)
Since 2022 there has been a sharp increase in the number of businesses that have become insolvent. In this article we look at the possible reasons for this.
According to the Office of National Statistics more than 1 in 10 UK businesses reported a moderate to severe risk of insolvency in August 2022. More recently, Allianz Trade, the trade credit insurance provider, has predicted that business insolvencies in the United Kingdom are set to continue to rise over the next few years.
Perhaps there is little surprise the most significant factor forcing UK businesses to cease trading, are current high rates of inflation and correspondingly high interest rates. The speed with which struggling businesses are becoming insolvent is worrying and, sadly, inflation is unlikely to return to the Bank of England target for some time. A steep rise in energy prices is another big factor, followed closely by the cost of raw materials.
Temple underwriters continue to identify trends in the ATE applications submitted to us. This includes a rise in applications for cases within the retail and wholesale sectors, closely followed by construction.
The level of sophistication with which companies and individuals are trying to defraud creditors is alarming and something we are seeing on a regular basis. As underwriters we’re happy asking the difficult questions to ensure that we fully understand the case. We work closely with solicitors and insolvency practitioners to ensure the best possible outcome for creditors.
We can offer attractive premium rates for insolvency cases and delegated authority schemes to specialist insolvency solicitors to enable them to issue Temple policies on our behalf. These come with fully deferred and contingent premiums that are structured on a bespoke basis to work best for IPs and their solicitors.
If you would like more information on ATE insurance and disbursement funding for insolvency litigation, or you have any other legal expenses insurance query, please email firstname.lastname@example.org or call her on 01483 514809.
Sukhbir has an LLB honours degree in Law, she also completed the Legal Practice Course obtaining a Commendation.
She qualified as a Solicitor in 2020, she has worked in the personal injury sector for over a decade.
She joined the Commercial team at Temple Legal Protection as an Underwriter, in 2023.
Prior to joining Temple, Sukhbir worked in the Serious Injury team doing multi track work at a leading Law firm, dealing with injuries arising from road traffic accidents, accidents in the work place and public.
Her background has led her to have an interest in risk insurance.
Read articles by Sukhbir Kaur