After BREXIT: Credit insurance giant brace for the price spike(Case Study)

Overview
TIn the UK, motor insurance cost is increasing, but most likely, prices in other insurance are probably
rising due to trade credit insurance. On average, the price will grow at 5 percent due to the impact of Brexit its
negative effect on retail prices. Due to the changing situation, the credit insurer has to respond accordingly.
Admittedly, any increase in import prices negatively affects profit margin, which businesses cannot set aside.
After the Brexit, UK is experiencing "high severity" bankruptcies resulting in credit insurers, to reduce their
exposure before Carillion, a large construction company becomes insolvent. Before its collapse, the
construction company is holding more than 800 million pounds of debt payment to sub-contractors. The
Association of British Insurers (ABI) estimated that Carillion credit insurer 31 million pounds in payouts.
According to experts at ABI, the credit insurance experience with Carillion is a reminder of the critical role
credit insurance provides business during the uncertain economic situation.

1.2

0.8

0.6 A
B
0.4

0.2

0
0 2 4 6 8 10 12 14

Above is the list of hypothetical construction companies in two locations, England and Scotland, which
subscribed to credit insurance that we're able to survive and did not survive after the Brexit. Use the survival
analysis to measure the difference statistically. Scotland in 2014 went into a referendum to decide whether to
stay as part of the UK or not. Is the economy the reason? Discuss the economic risk Scotland wanted to avoid
before and after the elections.

p- 0.016120
value 251

Analysis;
The 0.016 p-value signifies a significant variability after the Brexit. Scotland survival rate was 47% while
England was 60%, which means Scotland economy to survive must stay with England as UK.