The rising cases of firms not paying debts to suppliers or otherbusiness partners have rendered commercial credit insurance 20%more expensive, on average, in the pas year, and in the case ofsome clients prices have even doubled, states Cristina Rusuleanu,general manager of the Romanian subsidiary of Euler Hermes, one ofthe world's biggest commercial credit insurers. In Romania, only2-3% of the more than one million firms on the market buy this typeof insurance. "Prices have risen by 20% on average, but in the caseof policies with very high claims they have climbed even by50-100%. We also had policies with a claims rate of 500-600%, andhence the situation had to be balanced through price hikes. Thisyear will not be better than 2009, we're grappling with manynon-payment cases," Rusuleanu explains. How does this insurancework? Firms effectively insure their turnover. Before the crisis,premiums for this policy amounted to 0.35% of insurable turnover,but now quotes have gone up to 0.4-0.5%.
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