The comments from EBB managing director Tim Elliott followed a claim from Aon Trade Credit that insurers may withdraw cover from the print market (PrintWeek, 25 July). The insurer’s warning was the result of the recent spate of print firm failures, which, it said, could cause credit insurance premiums to rise by 10%.

However, according to Elliott: The availability of credit insurance creates irresponsible lending. A merchant is encouraged to trade up to an agreed insured limit and many do, as no one will lose their job if the insured company goes bust.

Elliott claimed that if a paper merchant works closely with customers, it is far more likely to know its financial situation. He added that dramatic swings of cover from credit insurers often mean the premature demise of a firm. This knee-jerk reaction could see the availability of paper dry up almost overnight.

However, James Bowker, Aon leader for the paper sector, said: Credit insurers always have a difficult balancing act to perform.

Insurers are now more inwardly focused, examining their overall levels of risk exposure.