The UK Government is continuing to develop its scheme for supporting the market for trade credit insurance. This has now been agreed, following extensive talks with the insurance industry.
About £10 billion has been allocated for the purpose – in a typical year £350 billion of transactions are protected by trade credit insurance.
Clearly, the government does not intend to replace conventional insurance entirely, only to provide additional guarantees and reassurance for financial businesses.
Grocery businesses should not need to access this scheme directly – the intended benefit will be the continued availability of trade credit insurance from the usual sources.
Note that export transactions also benefit from government protection via the UK Export Insurance Scheme, which predates coronavirus.