Speaking at the National Association of Paper Merchant's (NAPM) policy group meeting, James Bowker, who has established Credit Risk Solutions's London-based office, said that insurers have been inwardly focused as they seek to tidy up their risk portfolios.

Bowker is the former account director at credit insurance broker Aon Trade Credit and has joined Credit Risk Solutions in order to target the print and paper industry.

Over the past few months, he said that underwriters have taken action to reduce their exposure to the most vulnerable risks and, as a result, their balance sheets are more stable, meaning they are now able to discretionally consider new cover.

Speaking at last week's NAPM event, he discussed the state of the current credit insurance market, claiming that there is still competition in the marketplace. 

"Back in the spring and summer, I felt like we were staring into the abyss. Underwriters were behaving so unpredictably and alienating their clients and I was concerned for the outlook of the sector," he said.

"While matters are still far from perfect, I think we have something to play with again."

In the second quarter of 2009, Bowker said that company liquidations increased by 39% compared with the previous year, while other insolvencies, such as administrations and receiverships, increased by 23%.

Currently, according to Bowker, over a 12-month period there is a one in 100 likelihood of a company entering a form of insolvency.

He added that the government's credit insurance top-up scheme, announced in April's budget, had "not been a runaway success", hence the extension of the offer several months ago.