In a recent article, Andrew Share of Coface expects the UK economy to improve due to increased consumer spending and reduced inflation. The Office for Budget Responsibility predicts growth of 0.8% in 2024, compared to Coface’s own forecast of 0.5%. However, Coface urges caution, as insolvencies are still rising and typically take longer to respond to improvements in the economy. The rise in insolvencies has been highlighted by the recent failures of Ted Baker and The Body Shop.
The increase in insolvencies has also been reflected in the latest statistics from the Association of British Insurers. The total claims paid by credit insurers in Q4 2023 was £69 million, up £19 million from Q3.