In a recent article published in Business Insurance, Brian Beggs, EVP, Surety, Sompo International U.S. Insurance, discusses the importance of selecting a surety partner with the financial strength, insight, teamwork, responsibility and sustainability to effectively manage risks.
He notes that while Surety is a relatively small segment within the property and casualty insurance industry, its relevance – and diversity should not be overlooked as it offers a valuable backstop for financial obligations required by statute or contract. “When people think about industries that use surety bonds, construction usually is the first one that comes to mind. But surety is a diverse line, and it offers protection to risk owners across many industries, not just construction,” he said.
He highlights the importance of having a balanced approach to ensure that economic trends smooth long-term results, and cautions against companies’ writing opportunistically without a long-term plan, which leads to unsustainable risk accumulations and, ultimately, hard choices.
“Sompo International Surety focuses on building a diverse portfolio across business sectors with balanced underwriting and an eye toward managing a sound surety portfolio. This approach ensures sustainable, profitable growth, which keeps the business stable.”