Zoom In: Target MD urges credit insurers to 'use common sense'

Credit insurers indicated that they may reduce their cover in the IT channel earlier this month

Credit insurers must "use common sense" and not cut cover in the IT channel, Target Components boss Paul Cubbage said.

At the start of this month CRN reported that credit insurers were preparing to limit their exposure as a result of the coronavirus' impact on the economy.

Speaking to CRN in a video interview, Cubbage said that he received a list of VARs and retailers from credit insurers that they were proposing to cut the cover for.

However he said that the underwriters appear to have not followed through with these plans, which he said could have driven up prices and let to profiteering in the market.

"It struck me as not just the wrong thing to do in terms of putting an obstacle in the way of buying IT, it just didn't make any sense," he said.

"It just seemed strange to focus on a sector that is going to do very well out of the current demand."

Chang was speaking to CRN as part of our Zoom In series, which discusses the impact that the COVID-19 pandemic has had on the channel. You can view other videos here.