GAD has helped develop trade credit insurance schemes backed by 10 billion pounds of government guarantees.
The Government Actuary's Department (GAD) has played a central role in new measures to support the credit insurance market, with a reinsurance underpin.
GAD was part of the advisory and analytical team behind the development of the
Cross government working
In developing this unique challenge, GAD worked closely with the
The scheme is available on a temporary basis for 9 months; it has been backdated to
“We produced financial models to help the government understand the implications of guaranteeing business-to-business transactions previously supported by trade credit insurance. Our modelling meant that policy makers could explore costs under various scenarios to better understand the potential implications of different scheme structures.
“Policy makers then used these models during their negotiations with the insurance industry to estimate the potential implications on government finances. This means the scheme ensures firms are supported with risk which is shared appropriately between the government and insurers.”
This reinsurance scheme will help struggling businesses at risk of having their credit insurance withdrawn or their premiums raised beyond sustainable levels. This will help business to continue to operate, protecting jobs and supply chains.