The surety bond business has long been plagued by razor-thin profit margins, with many providers satisfied just to break even on the issuance of a new product.Most surety bond issuers therefore understand that success hinges on robust volume. But as providers strive to generate greater sales, they're confronted with a troubling reality: processing surety bonds, which are contractual agreements guaranteeing a certain behavior or fulfillment of an obligation, can be labor-intensive.
Issuing these types of bonds requires a great deal of product specialization. The process also typically warrants an exchange of data between several diverse parties: an issuer, an agent/broker, a buyer and an obligee, the entity that's ultimately covered by the bond. Invariably, these parties must exchange data from disparate operating systems.
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