The XBRL US Surety Working Group has published a business case Data Standards in Surety Underwriting, which outlines alternatives to bring standards into the surety underwriting process and recommends the use of XBRL to improve efficiency and timeliness. The following issues with today’s surety underwriting process can be improved through standards:
- High costs. Entering data by hand into the surety’s analysis system requires significant staff resources.
- Delays. Time spent re-keying delays the completion of the underwriting process.
- Negative impact on contractor access to credit. Receiving more timely WIP data can have a positive impact on the contractor’s ability to obtain credit.
Read the paper: Data Standards in Surety Underwriting May 2016
The working group includes sponsoring organizations: AIG, GALLINA LLP, Liberty Mutual, NASBP (National Association of Surety Bond Producers), Travelers and Zurich Insurance. In addition, several participating organizations are involved as observers and advisors on the project including CFMA (Construction Financial Management Association of America), SFAA (The Surety & Fidelity Association of America) and the FASB (Financial Accounting Standards Board).