Page 24 - Insurance Times April 2021

Value Added Services by Reinsurers: Surety Market. % (Global Surety Market to 2027 ,
Sample Report, 2019).
Some large reinsurers who are experienced in handling
surety risks even provided additional value added services In developed markets like the US, the Contract Surety
such as: market continues to grow while retaining profitable.
Risk mitigation activities There are adequate construction backlogs to support
Arrange third party inspection reports on the risks : new investments and bonds. Whereas, the areas of
X Inspection Reports, undertaken by third parties un- concern in this market include increased material costs,
connected to the beneficiary or the contractor. shortage of labor to complete construction projects and
interest rate uncertainty. Figure 4 above briefly depicts
Track performance of ongoing and major projects which SWOT analysis of the Surety Bond market.
are reinsured :
X Provide warning signals ahead of defaults by
indication possible faults. Information Technology Solutions for
X Suggest amendments to ensure performance of Surety Bond Market
project which is guaranteed. Trends in Surety - Technology in the Surety Bond
space:
SWOT Analysis of the Global Surety Before discussing solutions for the Surety Bond market

Bond Market: through use of Information Technology (IT), it is imperative
to understand key technology trends influencing Surety Bond
There are key market drivers and challenges to discuss,
before SWOT analysis of the Global Surety Bond market. market.
Digitization of Surety Bond Transactions: (As explained
There is wide acceptance of Public Private Partnership
in Figure 5 below) :
(PPP) Model to propel the surety bond market's growth.
X In the digital era, more contractors are being asked
Public-private partnership (PPP) to recollect is a funding
model for a public infrastructure project such as a new to submit electronic documents to procure work.
airport or power plant. The public partner could be X This means that, in some jurisdictions globally, surety
identified as the government at a local, state including bonds also needs to be submitted electronically.
a national level. While the PPP is popular in developed X In 2017, Trisura Guarantee Insurance Company
and emerging economies, it is a key driver for the global (Canadian insurer), with focus on small to mid-

market surety business, was the first
surety company to deliver an e-bonding
platform to facilitate electronic
delivery of surety bonds. (Moorcraft,
June, 2019).
X This idea is starting to catch on
in other jurisdictions around the world.
X On-Premise & Software-as-a-
Service (SaaS)/hosted delivery options
availability in product solutions who are
specializing in Surety Bond Software.
X Graphical dashboards that
presents key performance indicators to
monitor Surety Bond product
performance, all in one place. It aids
quick and accurate determination of
account management metrics and
operational efficiency goals tracking by
Figure 4 - Swot analysis of global surety bond market business users.

24 The Insurance Times, April 2021