Allianz Trade’s latest Global Insolvency Report has found that UK business insolvencies totalled 26,708 in 2024 representing a drop of 5% on the previous year. They are forecast to drop by 3% this year and 7% in 2026. In contrast, global business insolvencies were up 10% in 2024 with increases of 6% and 3% expected this year and next.

Aylin Somersan Coqui, CEO of Allianz Trade, said: “We expect global business insolvencies to increase by 6% in 2025 and 3% in 2026. This upward adjustment results from the risk of delayed easing of interest rates, increased uncertainty and soft demand.

“Relatively high interest rates could strain highly leveraged sectors and corporates, as well as those that have specific challenges to finance – such as the green transition, AI competition or supply-chain frictions. At the same time, prolonged uncertainty could leave companies in wait-and-see mode, leading to reduced activity to the detriment of already fragile corporates.

“Meanwhile, there are also other risk factors, such as the persistent lack of economic momentum and the post-Covid clearance of the backlog of insolvencies. The business environment has rarely been so complex and volatile, and corporates should remain alert to avoid non-payment risk.”