Scared Singapore suppliers considering more insurance

The plummeting credit worthiness of European and US partners has forced firms to prepare for the worst.

Insurance broking and risk management firm Marsh reports that it received 30% more trade credit insurance quotes from Singapore companies just in the past quarter alone.

Hong Kong suppliers have also felt the default jitters as Marsh saw a 20% rise in insurance quotes over the same period in the city-state.

"Economic worries, particularly in Europe, are causing Asian suppliers to reassess the ability of their customers to pay," said Richard Green, Head of Marsh's Trade Credit and Political Risk Practice in Asia.

"In response, companies are increasingly looking at trade credit insurance to protect cash flow," he added.

Marsh added that small-to-medium size companies are "most at risk for cash flow issues resulting from buyer default owing to reduced balance sheet strength and less ability to withstand financial shocks."