Rancho Mesa's Alyssa Burley and Account Executive of the Surety Department Andy Roberts talk about how the surety industry is innovating to keep up with changes in technology.
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Director/Producer/Host: Alyssa Burley
Guest: Andy Roberts
Editor: Lauren Stumpf
Music: "Home" by JHS Pedals, “News Room News” by Spence
© Copyright 2022. Rancho Mesa Insurance Services, Inc. All rights reserved.
Transcript
Alyssa Burley: Hi, this is Alyssa Burley with Rancho Mesa Media Communications and Client Services Department. Thank you for listening to today's top Rancho Mesa News, brought to you by our safety and risk management network, StudioOne™.
Welcome back, everyone. My guest is Andy Roberts, Account Executive in the Surety Group with Rancho Mesa. Today, we’re going to talk about how the surety industry is innovating to keep up with changes in technology. Andy, welcome to the show.
Andy Roberts: Hi Alyssa, thank you so much for having me back in StudioOne™.
AB: Of course. So, rarely are the words surety and technology advancement synonymous, and that’s because it’s hard to introduce advancements to an industry where so many obligees still require raised seals and wet signatures on the bonds they are receiving. However, due to some challenges that bond companies, insurance agencies, and obligees have faced during the pandemic, the industry is being forced to innovate. So Andy, what are some of the ways you’re seeing innovation?
AR: So, to start, e-signatures on bond documents are becoming much more commonplace, and electronic powers of attorney and digital seals are being adopted with the eventual goal of creating a surety bond creation process that is wholly digital.
AB: How would that work?
AR: Well, General Indemnity Agreements executed by a contractor, or – they’re also called a principal, when they are establishing a surety program with a bond company, have traditionally needed to be executed in front of a notary and the original document, with the wet signatures, provided back to the bond company. Now, more and more bond companies are moving away from this archaic practice and allowing these documents to be signed digitally. This is an important change as it shows the industry’s willingness to implement changes that are still in the best interest of the principal.
AB: Now, earlier, you mentioned the use of electronic powers of attorney, or POAs, and digital seals. Are they becoming more common?
AR: So, only a couple of years ago, very few bond companies utilized electronic POAs, opting instead to mail agents hard copies that needed to be dated using a typewriter. Yes we still use typewriters. While this method is still being used, more and more sureties are opting to provide their agents with e-POAs that they can be printed as needed. In addition to this change, digital seals are also starting to become more commonplace. These can be affixed to the POAs and the bonds themselves when they are transmitted digitally. The importance of these two changes is worth noting as they are steps towards creating a process which allows for the creation of a surety bond by solely electronic means.
AB: I’ve noticed the surety department are the only ones who use the typewriter in the office, and that makes sense if you’re receiving paper documents. Hopefully, we’ll start seeing it more adoption of digital tools to get this process streamlined.
AR: Absolutely, getting to a point where contract bonds are done only electronically is still a ways off, from what I understand, but the technologies that are needed are available, making it necessary that the surety industry continue to embrace technology to improve the processes, and to ensure we are providing bonds in the form, you know, whether that be electronic or paper, that the clients and obligees want.
AB: Agreed, and I know our clients currently have the option to sign their property and casualty documents electronically on our tablets while we’re at their office. It really speeds up the process.
Well Andy, if listeners have questions about their bond program or if they’re interested in implementing some of these digital tools, what's the best way to get in touch with you?
AR: So, I can be reached at (619) 937-0166 or aroberts@ranchomesa.com.
AB: Andy, thank you so much for joining me in StudioOne™.
AR: Thank you so much for having me, Alyssa.
AB: This is Alyssa Burley with Rancho Mesa. Thanks for tuning into our latest episode produced by StudioOne™. For more information, visit us at RanchoMesa.com and subscribe to our weekly newsletter.
