Page 32 - Insurance Times April 2021

A. Cloud Based Solutions from SBPAA paperwork involved in processing and managing surety
Who is the SBPAA? bonds also. Using a blockchain provides specific advantages
in sharing documents and data between all the stakeholders
X The SBPAA is made up of surety bond producers
(agents and brokers in USA ) who sell Surety Bonds in surety bond business. Blockchain technology will transform
issued by the insurance company and other Surety the process of information exchange of surety bond
providers with their customers and other key stakeholders
Bond providers.
from policy issuance to claims lifecycle.
X These producers have been hunting for efficient and
convenient surety software solution for many years. Since blockchain enables to have a single source of truth and

X With every producer in SBPAA network adding to provides the same information in a centralized ledger to all
their volume of policies; it increases the attraction the stakeholders, it is expected to cut communication lines
to the insurers who also sponsor the SBPA being and chances of any fraud due to miscommunication or
beneficiaries increasing the allure to our Sponsor tampering of records. A representation of how various
Carriers, which directly contributes to our ability to parties in the Surety Bond business can play specific roles
develop new functionality to our systems. and benefit from the blockchain-enabled process is explained
X The Mission Statement: To provide the bond in Figure 13 above.
producer network the tools to survive technology
disruption (surety bond.org, 2020). Conclusion
X SuretyCloud: Complete End-To-End Bond Processing While the Surety Bond insurance market is subject to many
of SBPAA. challenges, there is a tremendous potential for insurers/
surety providers to benefit from this growing market
X The SuretyCloud offers agencies a complete surety
segment with many new and challenging project risks
agency management system (AMS) using the
newest efficiency technologies.(surety bond.org, underwritten by this market. Lot of due diligence is required
because major losses in Surety Bond occurs while covering
2020).
construction business risks. Project risks are often disguised
X There are three editions to the cloud based solution in many forms and not apparent more often than not.
called SuretyCloud, namely Lite Edition, Professional
Edition and Enterprise Edition with the first two A growing construction and infrastructure led market looks
editions being free for its members. (surety presents a great opportunity, but can also be a trap for
bond.org, 2020).
nonperformance by over commitment. There is need for
B. Blockchain Solutions for Surety: new technology to better understand and manage these
Large insurers in Europe have led the journey to harness risks and further understand new talent to the market.
blockchain solutions for their surety bond business. Similar
to other insurance processes, there is significant amount of IT solutions could include using cognitive solutions to bring
in understanding of the insured
in the global and dynamically
changing risk influences. The
future of Surety Bond market
will evolve around new
technology, customer data
understanding in the
background of global and
emerging risks and better risk
management supported by
electronic bond management
technologies.

References
Figure 13 - Ragistration and tracking process in Blockchain Various Sources

32 The Insurance Times, April 2021