The financial credit crunch has taken its toll on the trade credit insurance market where premium costs have risen sharply and underwriters are scaling back on their risk exposures. The wool industry is one of the casualties as underwriters have all but stopped writing new business in this sector. Trade credit insurers have also been hesitant to write new business for the auto, textile and apparel, retail, mining and building and construction industries, industry officials say. Due to the sharp rise in demand for insurance trade credit cover, the New Zealand Export Credit Office has stepped up its role, and is exploring the concept of co-insuring with private insurers.
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Exporter, Issue 11, June Quarter 2009.