What do Insurance Companies do when their Surety Department has losses?
Before answering this question, one must understand how small surety volumes are in relation to the overall insurance industry. The surety industry is a $4.2 Billion industry, within an insurance industry estimated at $500 Billion (less than 1%). And where there are thousands upon thousands of insurance companies nationwide, there are only 20 surety companies that write approx 85% of all surety premiums. So when times are bad, it is not a difficult decision for big insurers to dismantle or sell their surety department. In fact, over the last three years, some of the largest surety writers have exited the business….Reliance, Kemper, Amwest, Frontier, Atlantic Mutual, Crum & Forster, Gulf, XL Surety, Capitol Indemnity, Navigators, Mountbatton, Harleysville, and Quanta…are just a few. Mergers are also common, such as NAS and Washington International, and then Travelers (Aetna) and St Paul. Tips for Managing your surety relationship… 1. Surround yourself with professionals. Your insurance
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