Payment Culture in the UK Insurance Sector
The Insurance sector is a critical component of the UK economy, with many small businesses relying on insurance providers for protection against risks, uncertainties and for the payment of services provided for their clients.
Late and slow payment in this sector can be a significant challenge for small businesses operating in this industry as well as the big players. Easily recognisable examples would be in Healthcare Insurance, where the insurance companies pay for medical professionals to look after their clients, or in Automotive Insurance, where the insurance company pays small garages across the UK to fix repairs, the importance (to small businesses) of being paid promptly is vital to ensure customer service and loyalty.
This is why, in general, the Insurance Sector is one that pays fast, with a few small exceptions. The best and fastest payers in the sector pay in well under ten days, with only a few insurance companies paying slowly. Aetna Insurance and Charles Taylor Adjusting both saw a big increase in payment terms this year (reason unclear) but we will continue to watch the sector closely.
In conclusion, the Insurance sector is generally a beacon of good and fast payment with a few exceptions.