THE STORM has died down, the seas have calmed and the clouds are parting. The surety industry has weathered the turbulent times of the late 1990s and the first years of the 21st century, and has come through intact and on course for a potential recovery.
The large losses faced by the industry in the past few years served as a clarion call to return to the solid traditions on which surety is founded. By returning to the fundamentals, namely solid underwriting practices, the industry is heading toward recovery.
The surety bond producer will continue to play an essential part in advising contractors how best to adapt to market conditions. The producer can emphasize the need for contractors to invest in quality financial statements and the importance of having a solid balance sheet. Since sureties are requiring more accurate and current information, the producer's role as the nexus of communication between the surety and contractor is more important than ever.
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