Tonight’s forecast: Dark!
We like to joke about the TV weather team: “I wish I had a job where I could be wrong 50% of the time!” * But in reality, we still tune in and watch.
Question: Is a surety bond underwriter just like a weatherperson? How are they similar?
Both are paid to make predictions. They gather and analyze information: “Crystal ball gazers.” There is a hope / expectation that they will achieve some degree of accuracy. Whether you are forecasting the POP, or the completion of a construction project, isn’t it just about the same?
You know forecasters use computer models. They have the National Weather Service and there are Canadian and European Models. They could just put that up on the TV screen! We don’t really need the “local weather talent,” do we?
What about bonding? Many sureties already use computer based programs. These provide instant or quick answers on surety bonds that fall into certain categories. Is that all we need? Should we get rid of the Surety Underwriter / Weatherman entirely? We say “No!” Here’s why…
- The Underwriter does more than predict the future. A good underwriter contributes to the outcome. Their efforts positively affect many people.
- When bonds are approved, the bond agent makes money. The construction company achieves new revenues. So do their suppliers and subcontractors. Think of the ripple effect!
- The bonding company and their reinsurers make money.
- Presumably something of value is built for the owner; a useful asset is created.
Really good underwriters are more than “yes / no” decision makers, they are facilitators. The experienced underwriter sees a path forward that may not be obvious to others. How can this deal (performance bond) be supported while protecting the interests of the surety, the guarantor of the project’s success? Here’s where knowledge, experience and attitude come in.
Does the underwriter want to make the deal happen, and have the know-how to do it?
These high level underwriters aren’t weathermen, they are Rain Makers! They work actively to produce profits and success for all they touch. Without their expertise, projects would not be supported and built. Doors get opened and companies reach new, higher levels of mutual success.
This is a combination of science and art with a dash of experience. And you don’t find it too often. But when you do, grab an umbrella and watch good things happen.
KIS Surety is the exclusive national underwriting department for Great Midwest Insurance Company, an A-8 rated carrier. Call us with your next bid or performance bond. 856-304-7348
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* Actually, weather forecasters average more than 80% accuracy. Good job guys!