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Instec, a provider of software solutions for commercial program and specialty writers, has undertaken a strategic partnership with NIIT Technologies, a global IT solutions firm, to co-develop N-Surety, a subscription-based solution for the automation of surety bonds. The new service is calculated to reduce expenses and improve turnaround time for surety bond issuers, according to an Instec statement.
The new partnership addresses the struggles of many insurers and brokers dealing with older surety bond systems during a period of expansion in construction, according to Instec. Legacy systems and processes make it difficult for parties to manage increased demand for contract and commercial surety bonds; given the cyclical nature of the real estate market, traditional license-based pricing models make many systems unprofitable when surety bond volume contracts.
“We saw a widening gap between the needs of surety providers and the capabilities of older systems,” comments Lalit Dhingra, U.S. President, NIIT Technologies. “Within property & casualty, surety is a niche market that can be best served with a modern software-as-a-service, subscription-based technology platform. With N-Surety, we’re bringing the economic advantages of a cloud-based, pay-as-you-go solution to this often-ignored corner of the market.”
The NIIT Technologies surety bond solution provides underwriting and forms generation services from a cloud-based platform, eliminating the need for on-premises infrastructure and system management resources. The vendor prices on a per-bond-per-year subscription fee, with no separate licensing fee, enabling surety bond issuers to align costs with business volume.
Lower Expense Ratio
“NIIT Technologies selected Instec to configure its software platform to provide a new solution to the surety market,” Dhingra adds. “Our N-Surety offering is a subscription model that insurance customers can utilize to lower the customer’s expense ratio.”
“Surety may be a new segment for Instec, but our deployment and pricing approaches are already well-aligned with the needs of this market,” comment Kevin Mason, executive VP, Instec. “Cloud-hosted deployment, a managed content library, and pricing that scales up or down with the business offers surety bond providers greater agility and increased profits.”