Page 25 - Insurance Times April 2021

Digital Surety businesses should be facilitating a Other important features to modernize
holistic customer experience from the very first Surety Systems
search, all the way to bond delivery, and on through
There are key drivers to modernize Surety Bond
the bond's lifecycle, all while maximizing low to no
touch experiences. IT systems:
Cost Reduction: Reduce cost of executing and managing
Effective modernization strategy requires holistic
consideration of data, processes, technology, and surety bonds.
people, as well as business and operational changes. Automation: Manage surety bond requirements
efficiently through automation of activities -
Today, practically all digital transformation initiatives
are being built on 3rd Party Platform technologies administration, processing, and reporting functions.
to expand its capabilities.
The key features for modernization can be
Carriers are seeking to simultaneously lower costs,
improve experiences, comply with regulations, and studied in two groups:
accelerate time to market. A. Administration Features (for Surety Bond
Providers/ Insurers)
Figure 5 - Details of Digital Surity Bonds X Create links between the insurer, the client
(Principal), and the Surety Company.
Complete automation of the underwriting, processing, X Share program information across accounts.
delivery and payment of various types of bonds based
on credit scores, financials, and industry risk profiles. X Define insurer's own rate groups for use across all
insurer's programs.
Configuration capabilities for sureties (underwriters) to
efficiently build, change and modify automated X Track powers of attorney.
underwriting rules. X Manage Lines of Authority.
Automated incentive programs based on several factors X Define and utilize multiple sites.
to gain additional premiums. X Maintain a list of favourite clients for easy access.

Electronic power of attorney interface to enable the X Receive notification of account activity -account-by-
management of issuance, use and reporting of powers account basis.
to producers; store digital and electronic signatures.
B. Execution Features
The IT solutions aim at addressing top challenges of
Surety Bond providers as described in Figure 6 above. X Easily create, edit client information.

Figure 6 - Top challanges of surety bond providers

The Insurance Times, April 2021 25