1. Surety Standards Toolkit
Data Standards for the Surety Industry An industry-driven program to use standardization to improve efficiency in the surety process
Surety Standards Toolkit

2. Surety Standards Toolkit
Agenda
Fundamentals of standards
Surety process use cases
Other sureties supporting the initiative
Benefits for [COMPANY NAME]
Getting started
Surety Standards Toolkit

3. Surety Standards Toolkit
How much time does the surety underwriting team spend manually entering data into our surety system?
What if that same data could be automatically extracted and analyzed within seconds of receiving it?
Surety Standards Toolkit

4. Standardization can make that happen.
Surety Standards Toolkit

5. Surety Standards Toolkit
Data standards lower cost, increase accuracy, make data more timely by transforming paper documents into computer-readable data.
Clearly defined to creators, data intermediaries and end users
Surety Standards Toolkit

6. Surety Standards Toolkit
The surety industry, led by the NASBP and SFAA, has initiated a program to eliminate unnecessary manual data entry, through standards developed by ACORD and XBRL US. These standards will help sureties provide faster response times with the most accurate information available.
Surety Standards Toolkit

7. Surety Standards Toolkit
ACORD and XBRL US are non-profits standards organizations working with the industry to increase efficiency.
ACORD –working with the insurance industry since 1970:
Facilitates fast, accurate data exchange and more efficient workflows through the development of electronic standards, standardized forms, and tools to support their use
1/3 of global insurance premium written using the ACORD Standards
300,000+ forms downloaded
Real time Report of Execution upload in use today for Surety
Developed ACORD eLabel forms for Surety to simplify implementations
XBRL US –responsible for the XBRL financial data standard which is:
Free, open, nonproprietary – no licensing fees for use
Widely used in the U.S. – by every public company reporting to the Securities and Exchange Commission, every bank reporting to the FDIC
Global – used in 60+ countries by 10 million+ private and public companies, adopted by 100+ regulators
The only financial data standard – developed to handle unique characteristics of financial data
Surety Standards Toolkit

8. Surety Standards Toolkit
Four use cases have been identified within the surety process where standards bring significant benefits.
ACORD
Bond request
Report of execution
XBRL US
Work-in-Process report
Contractor financials
Surety Standards Toolkit

9. Use cases: ACORD eForms With eLabels
Electronic fillable ACORD forms capable of collecting data.
Data from one of these forms can be extracted and imported to surety agency management systems or surety underwriting systems.
Benefits:
Increased responsiveness to customers
Reduced manual entry and re-keying
Fewer errors
Forms Currently Available:
501 Report of Execution
502 Contract Bond Request
503 Commercial/Misc. Bond Request
504 Additional Entity

10. Use cases: Work-in-Process report & full financials
Sureties collect between one to twelve Work-in-Process reports from each contractor every year, and full financials from contract and commercial accounts. With use of the free XBRL standard, data can be imported instantaneously.
Surety Standards Toolkit

11. ACORD e-labels and XBRL to eliminate manual data entry
Use of standards reduces data entry time from minutes or hours to seconds
Proposed Process
ACORD e-labels and XBRL to eliminate manual data entry
Surety
Producer and Customers
Eliminate manual data processing
Reduce need to review data
Faster response time from surety/bank/SBA
More current, accurate data
Surety Standards Toolkit

12. Surety Standards Toolkit
Watch the video demonstrations: Standards Adoption Toolkit adoption-toolkit/
Surety Standards Toolkit

13. The industry standards to gain from standardization
Surety eliminate manual processing reduce need to review data Producer & Our Customers faster response time from surety
Surety Standards Toolkit

14. Ready to Act Forms Are The Industry Standard.
Output to Sureties is Standard.
Estimate that surety agency management systems implementing ACORD forms account for over $3B of all SFAA member premium.
Approximately 40 carriers are likely to have their systems accept ACORD e-labels within the next 12 months, representing over 50% of all SFAA member premium.
ACORD has developed a specific forms license for surety vendors at a modest cost. XBRL is openly available.
Use cases are ready; business cases are ready; marketing materials are ready.
Vendors need to add e-labels; Sureties need to accept them.

15. What are the Costs to Implement?
Implementation of surety industry standard ACORD forms has been as simple as mapping a bond form. Minutes, not hours.
Vendor mapping and testing of e-label and XBRL output-approx hrs.
Surety programming and testing of e-label and XBRL input – approx hrs.
Total e-Label and XBRL Implementation Costs- Hours, not Months!

16. What are the Benefits of Implementation?
Estimated # of Transactions for Surety Industry Annually
Estimated $ Savings from Re-keying for Surety Carriers Annually
> 1,000,000 Final Bonds
> 2,000,000 Bond Requests
> 500,000 Bid Results
> 100,000 Financial Statements
> 80,000 WIP Schedules
4 min/ROE
5 min/Bond Request
3 min/Total Results
10 min/Fin. Stmt.
60 min/WIP
Estimated Savings: Over $10 Million Annually
Note: Transaction estimates are extrapolated based on market share. Data entry costs estimated at $.50 per minute.

17. Surety Standards Toolkit
Industry-wide adoption of standards is necessary. The list below includes other carriers working to incorporate these standards.
Surety Standards Toolkit

18. [COMPANY NAME] stands to benefit from standards.
ROI for
Surety Standards Toolkit

19. Getting started is easy.
Watch a webinar on how to incorporate these new standards on September 19. Register here:
Schedule a call to discuss business and technical issues.
Learn more by visiting pledge/standards-adoption-toolkit/
Surety Standards Toolkit