For brokers, efficiency is everything. However, the traditional surety bond purchasing process has long been plagued by inefficiencies that eat away at time, productivity, and profitability. One of the most significant pain points in this process is double entry — brokers must input data into a surety provider’s portal and then re-enter the same information into their agency management system. This redundancy slows down workflows, increases the risk of errors, and creates administrative burdens that take brokers away from their core focus: growing their business.

In a high-volume, transactional business such as surety bonds — where premiums are often small and brokers make only a modest commission per bond — efficiency and ease of use is paramount. The more manual steps involved, the less profitable the process becomes. If issuing a single bond takes 20 to 25 minutes due to unnecessary data entry, and a broker handles multiple transactions per hour, these inefficiencies compound quickly.

Technology has dramatically transformed the surety bond landscape, making processes faster and more automated, and significantly reducing friction for brokers. Decades ago, issuing a bond required typewriters, physical signatures, and mailing documents back and forth. Today, electronic signatures, pre-filled forms, digital storage, online payments, and online platforms have eliminated many of these hurdles.

The push toward automation accelerated further during the COVID-19 pandemic, which encouraged more obligees — government entities and regulatory bodies — to accept electronic versions of bonds rather than requiring physical documents. This shift has paved the way for a more streamlined, digital-first approach to bond purchasing.

Modern bond purchasing platforms, like the one we’ve designed at Intact, optimize the user experience, minimizing the steps required for brokers to secure a bond for their clients. Some of the most impactful enhancements include: 

• Minimal data entry: Auto-populated fields for obligees, addresses, bond amounts, and other critical details reduce manual input and potential errors.
• Instant issue and auto-approved bonds: Data-driven underwriting technology allows many low-risk bonds to be approved automatically, significantly speeding up the process.
• Credit card payment capability: Direct online payments mean brokers no longer need to chase down clients for checks or wait for funds to clear, improving cash flow and eliminating unnecessary back-office work.
• Electronic indemnity execution: With the ability to handle general indemnity agreements digitally, the approval and binding process is now faster than ever.
• Direct billing and renewal management: Instead of brokers manually handling renewals and collections, automated systems can send invoices and continuation certificates directly to clients, reducing administrative burdens.

A more efficient bond purchasing process benefits brokers beyond just saving time. By reducing administrative tasks, brokers can keep their focus on activities with revenue in mind. This means getting new clients and expanding their book of business. Additionally, efficiency can become a competitive advantage. Clients are more likely to choose surety bond providers that offer seamless, hassle-free solutions, even if commission rates vary slightly.

Another critical advantage is customer retention. Many surety bonds, particularly compliance-related ones, are required for businesses to continue operating. Once a bond is issued and seamlessly renewed year after year, clients are unlikely to go through the hassle of switching providers, making these bonds a “sticky” revenue source for brokers.

The surety bond industry is poised for further advancements in automation and digitalization. While some obligees still rely on paper-based processes, the trend is shifting toward greater adoption of electronic bonds. In the future, brokers may see a world where obligees can access a centralized digital system to verify bond details instantly, eliminating the need for physical documentation altogether.

Brokers who want to stay ahead should prioritize partnerships with forward-thinking, technology-driven surety providers that continue to invest in digital efficiencies. As the industry evolves, those who embrace automation and innovation will position themselves for long-term success.

In an increasingly competitive market, the ability to offer fast, seamless bond solutions could be the key differentiator for brokers looking to grow and succeed. The future of surety bonds is digital, and the brokers who adapt will thrive.

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