Surety underwriting can be especially challenging during recessions and recovery periods. Data from the recent recession and others in the past offers insights into how surety writers can continue to achieve profitable growth into the future.
Guy Carpenter’s analysis shows that recessionary periods between 2001 and 2021 have had an impact on the surety marketplace and led to underwriting innovations. The briefing includes an overview of the impact on surety results and underwriting changes in each of the recessionary periods studied. Learning from these cycles, surety companies can better manage risk and take advantage of opportunities, even when economic conditions are uncertain.
One reason for the surety industry's sustained profitability through the recent recessions is the continuing development and adoption of technology, including exposure modeling tools such as SureSight. Guy Carpenter's proprietary surety exposure model provides a superior view of risk characteristics, helping clients to better underwrite and manage risks in their portfolios, tailor effective reinsurance solutions, and guide their growth strategies while enhancing profitability.
Guy Carpenter has a history of innovation in developing the latest credit and portfolio tools in support of the firm’s surety company clients. That innovation, coupled with extensive experience, industry leading market share and unrivaled technical resources, has resulted in highly efficient reinsurance solutions in an ever-changing risk environment.