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Hub You - Hard Times For Surety Bonds
Double-entry Bookkeeping is one of the standard accounting practices for recording financial transactions. Five hundred years ago it was codified for the first time by Luca Pacioli.The conceptual framework is that a business can be described by a number of different accounts, each describing an aspec
Vicious cycle:
We need more profit from you -
There are several types of protection and security available for your phone lines. If I gave you an idea of what could occur if your lines aren’t protected it would make you want to do something immediately to protect your lines. I see so many businesses every day without one ounce of phone or telecom pro
One thing that many do not understand is while the current surety bond market is tough, it is considered a more traditional underwriting approach. Contractors are being angered by decreases in their bond lines, or in worst cases are now being deemed "not bondable". Business owners seeking commercial bonding such as license bonds to run their business are not only finding it harder to obtain an approval, but are also seeing rates much higher than years past.
Why such a drastic difference? A couple years back the industry saw the softest bond market ever, which caused a backlash to what is now today's hard market. The surety bond market is cyclical, a member of the Surety Bond Forums commented on the cycle stating:
Vicious cycle:
We need more profit from you -
Slow and steady used to win the races in past, but rarely a remarkable success story in modern world of deadly competitions. Now they can’t rule, can’t achieve, can’t make things happen. Mostly they are pushed aside mercilessly by those vigorous gentlemen who are always ready to jump forward and hit the t
One thing that many do not understand is while the current surety bond market is tough, it is considered a more traditional underwriting approach. Contractors are being angered by decreases in their bond lines, or in worst cases are now being deemed "not bondable". Business owners seeking commercial bonding such as license bonds to run their business are not only finding it harder to obtain an approval, but are also seeing rates much higher than years past.
Why such a drastic difference? A couple years back the industry saw the softest bond market ever, which caused a backlash to what is now today's hard market. The surety bond market is cyclical, a member of the Surety Bond Forums commented on the cycle stating:
Vicious cycle:
We need more profit from you -
For a growing incorporation with increasing profitability and productivity, an Initial Public Offering (IPO) is the next logical step to take in order to obtain further financing. Once the corporation has fulfilled the requirements set by the authorities, going for listing is a fairly straightforward exerc
One thing that many do not understand is while the current surety bond market is tough, it is considered a more traditional underwriting approach. Contractors are being angered by decreases in their bond lines, or in worst cases are now being deemed "not bondable". Business owners seeking commercial bonding such as license bonds to run their business are not only finding it harder to obtain an approval, but are also seeing rates much higher than years past.
Why such a drastic difference? A couple years back the industry saw the softest bond market ever, which caused a backlash to what is now today's hard market. The surety bond market is cyclical, a member of the Surety Bond Forums commented on the cycle stating:
Vicious cycle:
We need more profit from you -
“But we’ve always done it this way.” “We’ve tried other things and they don’t work.” Sound familiar? This is the theme song of many companies and their managers. New and innovative methods shake the status quo and threaten comfortable patterns of thought. Looking at individual problems and processes in
Why such a drastic difference? A couple years back the industry saw the softest bond market ever, which caused a backlash to what is now today's hard market. The surety bond market is cyclical, a member of the Surety Bond Forums commented on the cycle stating:
Vicious cycle:
We need more profit from you -
Northern New England is emerging from its economic recession steadily, no one is breaking any speed records but all is not down and out as predicted. Some industry sectors are blasting right along. New Nano and Bio tech are strong and people are getting high paying jobs, while others in the areas of VT, NH,
Vicious cycle:
We need more profit from you - write more business
We need to write more business, loosen up underwriting
We've loosened up underwriting - oops- losses
Losses? Sorry, you aren't contributing to the bottom line - watch it
Tighten up underwriting - less premium - but losses still come in from previous underwriting
Losses increase - loss ratio increases due to smaller premium and more losses
Sorry - we are closing down surety operation and sticking to profitable lines
While at another company - lots of business out there due to company a getting out of business - go pick it up we need more business so we can get more profit and on and on and on
What is a 6 letter word for "doesn't learn from the past"
S _ R _ T Y
The good news for anyone looking to obtain a bond is that the market will become more liberal in time. The bad news for agents is this will not be the last time that accounts scramble in mass looking for a new agent that can offer them what you previously were. Fortunately for agents, in general they will fi
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