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OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of AMBestTV, Mathilde Jakobsen, director, analytics, AM Best Europe Rating Services, and Sridhar Manyem, director, industry research and analytics, AM Best Rating Services, say the COVID-19 pandemic could result in trade credit insurance claims reaching levels last seen during the 2008 financial crisis. Click on to view the entire program.

Jakobsen said AM Best anticipates an increase in trade credit insurance losses with global recessions threatening the world economy.

“Depending on the level of increases in insolvencies, as well as the depth of the mitigating actions that insurers are taking, we could see claims ratios rise toward the level they reached in the global financial crisis of 2008 and 2009,” said Jakobsen.

Manyem said insurers will need to take a new look at their enterprise risk management strategies.

“With this particular pandemic, it is different from other catastrophes because it has been global in nature. It has not been confined to a specific country or a region, so there has been a global impact across multiple lines of business,” said Manyem. “Insurance companies will be looking at aggregate risk intolerances, stress testing across multiple lines as opposed to concentrating on siloed stress testing. Insurers can probably take the lesson learned from the global nature of this event and apply it to other events, such as a cyber scenario.”

To access the related Best’s Special Report, titled, “Trade Credit Insurance: COVID-19 May Have Long-Term Implications,” please visit

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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit

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