SuretyScience - Blog #International

Soft surety markets and rising claims are testing Canada’s infrastructure projects

Wed, 25 Feb 2026 23:21:23 -0500

Soft surety markets and rising claims are testing Canada’s infrastructure projects

Canada’s contractors are gearing up for a flood of federally funded infrastructure work. At the same time, the surety market supporting those projects remains stubbornly soft - even as claims pressure rises.

For Steve Hastings (pictured right), SVP, head of surety for Liberty Mutual Canada, that combination should make brokers and contractors far pickier about whose paper they rely on.

“In times of plenty, we sometimes see some additional surety providers enter the market,” he said. “Some international, some from the US. And these are the ones that you will see… It takes a number of years for the process to play out and for some sizable losses to occur. And they may exit almost as quickly as they came in.”

From the outside, a soft market – more players, more capacity, keener pricing – can look like a win for buyers. Hastings said that view ignores how long it takes for large surety losses to materialize, and how exposed contractors can be when a provider pulls back or leaves the country mid-project.

“It’s currently a tough go for a contractor in Canada,” he noted, pointing to elevated claim activity in the surety sector tied to recent geopolitical and economic uncertainty. “It can be difficult to understand the aggressive facility terms being extended in such a tough environment.”

Aiden Lanzon (pictured left), SVP, Quebec regional leader and construction national practice leader at Liberty Mutual Canada, drew a parallel with other specialty lines that have seen an influx of capacity from players without much loss history.

“These are big projects for insurers,” he said. “At the beginning, you sign the contract. Then the premiums start to flow in. But you’re involved in a project for a long period – six, seven, eight or even nine years. That’s why underwriting is so important.”

In a $115 billion infrastructure cycle, he warned, claims are not a surprise.

“In these large and complex projects, which will likely cost billions, there’re going to be claims,” Lanzon said. “That’s inevitable. But insurers can play a key role in helping prevent the events that cause claims through risk engineering and in effectively managing them.”

When your surety (or insurer) doesn’t go the distance

The risk, Lanzon argued, isn’t just that newer entrants may underprice early projects. It’s that they may not be there when something goes wrong years later – or when a contractor needs to extend or restructure coverage as timelines and costs shift.

“You want to consider whether, as contractors need to understand the pipeline of these projects, you have an insurer who’s going to be there for the long term,” he said. “These projects are so long… A project that says it’s going to take six years is likely going to take seven.”

From the risk‑transfer side, continuity matters when terms need to change.

“Infrastructure projects are long and complex, so they are likely to change as construction progresses. It’s practically a given. That’s why it is so important to work with an insurer committed to the market, with a dedicated and stable team of professionals that can partner with the broker and contractor to refine the risk management program as the project evolves, bringing the right resources and products to bear.”

“Otherwise, you’re introducing a potential risk there,” he added.

He urged brokers and contractors to be “really selective” about which carriers they partner with on multi-year infrastructure work.

“Do they have an established track record of doing big, large projects like this? Because this is big and tempting money,” he said. “A lot of different construction insurers are going to say, hey, I’m willing to do this, I’m willing to do that. The good brokers and the good clients understand who the long-term partners are, the ones who will be able to support them through those projects.”

Claims as an education - if you have the right partner

Lanzon also highlighted the complexity of losses on mega‑projects, where multiple parties, layers of coverage and large dollar figures are the norm.

“The claims process can be arduous, it can be long,” he said. “You want to ensure that you have the insurance companies that are familiar and know how to manage these claims. Because some companies may see an $80 million loss, and start to be concerned.”

By contrast, he noted, Liberty Mutual operates at a global scale.

“Liberty Mutual is a big company. We pay hundreds of millions in claims every single year,” Lanzon said. “Because we play on these large projects around the world, we know how to mitigate and manage the risks associated with them, and how to effectively manage their claims.”

That experience, he argued, turns claims into a learning tool rather than an existential threat.

“As we say on the insurance side, a claim is like an education,” Lanzon said. “Having a dedicated, stable team creates institutional knowledge. Looking across a deep construction book lets your team apply that collective wisdom.”

For Hastings, the message is similar on the surety side: capacity quality matters more than headline price when the cycle turns.

“We’re obviously going to match our construction strategy to our broker partners who share and believe in that same strategy,” he said. “When you get the contractor on board with that as well, it’s a perfect partnership.”

https://www.insurancebusinessmag.com/ca/news/construction/soft-surety-markets-and-rising-claims-are-testing-canadas-infrastructure-projects-566419.aspx

ICISA executive director Wulff set to leave

Tue, 24 Feb 2026 20:22:41 -0500

Richard Wulff, the executive director of the International Credit Insurance & Surety Association (ICISA), has said he will leave the organisation at the end of the year.

“It’s a move made with mixed emotions,” Wulff said in a LinkedIn post. “On one hand, I have a deep love for this business and the people who make it what it is. On the other, I believe the time is right for a fresh perspective to take the helm and continue ICISA’s upward trajectory.”

He has led the industry association since January 2021, after a long career in the credit insurance sector.

Wulff got his start in the sector in 1993 with NCM – now Atradius – and later held roles in Germany and India with Munich Re and HDFC Ergo, respectively.

In 2009 he oined QBE in Sydney, where he was group general manager for the insurer’s global credit and surety business.

ICISA, whose membership is comprised of insurers, re/insurers and export credit agencies, celebrates its 100th centenary in 2026.

https://www.gtreview.com/news/on-the-move/icisa-executive-director-wulff-set-to-leave/

Swiss Re Corporate Solutions to acquire QBE's Global Trade Credit and Surety business

Fri, 20 Feb 2026 01:00:34 -0500

Zurich/Sydney, 20 February 2026 – Swiss Re Corporate Solutions, the commercial insurance arm of the Swiss Re Group, has agreed to acquire the Global Trade Credit and Surety business of QBE Insurance Group (QBE), subject to regulatory approvals.

Upon successful completion, the acquisition will strengthen Swiss Re Corporate Solutions' primary credit and surety insurance offering and expand its capabilities to address the risk management needs of corporate clients. The transaction supports Swiss Re Corporate Solutions' strategic ambition to diversify its portfolio and capture new growth opportunities.

QBE's Global Trade Credit and Surety business operates through a highly experienced team with a strong presence in Australia, New Zealand and the UK. The portfolio is expected to generate annual revenues of approximately USD 200 million.

This specialty insurance line plays a critical role in helping companies manage payment and performance risk arising from their accounts receivable. Globally, this segment of the insurance market generates around USD 19 billion in premium annually, with continued growth potential driven by heightened economic uncertainty, more complex supply chains and rising demand for sophisticated risk transfer solutions.

Ivan Gonzalez, CEO of Swiss Re Corporate Solutions, said: "This acquisition marks an important milestone for Swiss Re Corporate Solutions. It allows us to expand our offering in this attractive segment by strengthening our global credit and surety platform with a well-managed, profitable portfolio and a highly experienced team. We are excited to build on QBE's market-leading capabilities as we continue to differentiate our offering to help corporate clients navigate the evolving risk landscape."

The transaction is subject to various closing conditions including regulatory approvals, which are likely to take several months. During this phase, Swiss Re Corporate Solutions looks forward to working closely with QBE to ensure continuity for policyholders, brokers, and the team members, who are a key part of this transaction. No financial details of the transaction are being disclosed.

https://www.swissre.com/press-release/Swiss-Re-Corporate-Solutions-to-acquire-QBE-039-s-Global-Trade-Credit-and-Surety-business/9e249616-124b-4dd3-b3a3-4adfbba0982a

February Issue of Best’s Review Ranks Largest Surety Insurers, Largest MENA Insurers

Fri, 20 Feb 2026 00:49:59 -0500

OLDWICK, N.J.--(BUSINESS WIRE)--The February issue of Best’s Review includes the following exclusive rankings:

Largest Surety Insurers

Largest MENA Insurers

Best’s Review is AM Best’s monthly insurance magazine, covering emerging issues and trends and evaluating their impact on the marketplace. Access it here.

For Best’s Review advertising opportunities and a complete media kit, visit AM Best Advertising Services.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

https://www.businesswire.com/news/home/20260219127108/en/February-Issue-of-Bests-Review-Ranks-Largest-Surety-Insurers-Largest-MENA-Insurers

DigiPlus launches first surety bond for online gaming players in PH

Mon, 06 Oct 2025 15:07:00 -0400

By Iza Iglesias

DigiPlus Interactive Corp., operator of BingoPlus, ArenaPlus, and GameZone, has partnered with Philippine First Insurance Co. Inc. (PhilFirst) to launch the country’s first surety bond program for online gaming players, offering balance protection of up to P1 million per player.

The program, which takes effect immediately, covers eligible players who are eKYC-verified, have made at least one deposit, and remain in good standing with platform guidelines. Protection applies automatically across DigiPlus platforms without requiring players to purchase a separate policy.

“DigiPlus is proud to be the first in the industry to roll out this level of consumer protection. We are committed to putting our players first. With this surety bond, they can play confidently on BingoPlus, ArenaPlus, and GameZone, knowing that their funds are safeguarded,” said DigiPlus Chairman Eusebio Tanco.

At a press conference, Tanco said the initiative is a milestone not just for the company but for the wider online gaming sector.

“This is not just for DigiPlus, but for the whole Philippine online gaming industry. DigiPlus Interactive has always been guided by a simple yet powerful principle, which is players always come first. Our mission has been to deliver fun, engaging, and responsible entertainment while continuously raising the bar for safety, security, and trust,” Tanco said.

He compared the program to the Philippine Deposit Insurance Corp. (PDIC), which protects bank deposits up to P1 million.

“Here at DigiPlus, we’re insuring your money, all the players’ money, up to P1 million per player. This is more than just an industry’s first. It is a new standard of player protection. With this surety bond, every player can now enjoy the peace of mind knowing that their balances ... are safeguarded up to P1 million,” Tanco said.

Tanco highlighted that the partnership with PhilFirst — the country’s first domestic insurance company, established in 1906 — reflects DigiPlus’ commitment to innovation and trust.

“Innovation because we’re a pioneering solution never before seen in our sector, and trust because we understand that our players are at the heart of everything we do. By protecting their wallets, we strengthen their confidence in us and in the industry as a whole,” continued Tanco.

https://www.manilatimes.net/2025/10/05/the-sunday-times/filipino-champions/digiplus-launches-first-surety-bond-for-online-gaming-players-in-ph/2194896

NeSL in talks with insurers to launch surety bonds in digital format

Sun, 28 Sep 2025 00:17:00 -0400

By Aathira Varier

NeSL in talks with insurers to launch surety bonds in digital format

National e-Governance Services Ltd (NeSL) is in talks with insurance companies to issue surety bonds in digital format, according toindustry insiders.

Although the volumes for surety bonds continue to be low, non-paper issues will ease administrative work for insurers and could also help in increasing volumes, experts said. Surety bonds are legally enforceable tripartite contracts that provide a hedge against risks associated with infrastructure projects.

The insurance regulator in April 2022 had permitted general insurers to issue surety insurance bonds. NeSL facilitates the issuance, management, and verification of electronic bank guarantees (eBGs) and is in discussion to add surety bonds also to it.

https://www.business-standard.com/markets/news/nesl-in-talks-with-insurers-to-launch-surety-bonds-digitally-for-paperless-125092800442_1.html

DB Insurance Acquires U.S. Insurer The Fortegra Group for $1.65 Billion

Sat, 27 Sep 2025 00:40:00 -0400

By Seon Jeong-min

DB Insurance Co., Ltd. announced on the 26th that it has signed a contract to acquire 100% of the issued shares of U.S. insurer The Fortegra Group for $1.65 billion (approximately 2.3 trillion Korean won). The transaction will be executed using the company’s own funds and marks the largest-scale acquisition by a domestic insurer.

Founded in 1978, The Fortegra Group operates in specialized insurance, credit, and surety insurance, with annual premiums of approximately 4.4 trillion won and net profit of 200 billion won last year. It conducts business across the United States, the United Kingdom, Italy, and eight other European countries.

DB Insurance stated, “Through this acquisition, we will enter the world’s largest property and casualty insurance markets—the United States and Europe—to secure a business platform for global growth. We expect to enter the stable global surety insurance market and enhance revenue stability.”

DB Insurance has continuously expanded its overseas operations, focusing on three major regions: the United States, China, and Southeast Asia. Last year, it acquired stakes in Vietnam National Aviation Insurance (VNI) and Saigon Hanoi Insurance (BSH).

https://www.chosun.com/english/market-money-en/2025/09/26/W3PWHCVHYFELXA4EKAK74CWGCI/

Amynta Group to acquire surety broker, International Sureties

Fri, 26 Sep 2025 00:17:00 -0400

Author: Saumya Jain

Amynta Group, an insurance services provider, has entered into a definitive agreement to acquire New Orleans-domiciled, commercial surety brokers Global Surety, LLC, International Sureties Limited and International Sureties SARL, collectively known as International Sureties.

The transaction is expected to close in the fourth quarter of 2025 and is subject to regulatory approvals; however, the terms were not disclosed.

After the closing, Clark Fitz-Hugh, President and Chief Executive Officer (CEO) of International Sureties, will continue leading the business.

Founded in 1972, International Sureties is a specialty surety broker, providing a range of commercial surety products, including admiralty, court, bankruptcy, logistics and license & permit bonds.

The company provides innovative surety bond services for a variety of industries operating from offices in New Orleans, the UK and Belgium.

Robert Giammarco, Chairman and CEO, Amynta Group, commented, “International Sureties has a long and successful history in the surety market with an outstanding reputation. We have long admired their specialist focus and client-centric approach to the market.

“The Company further expands our specialty insurance offerings, and we look forward to partnering with Clark and his associates to support the continued growth of the business.”

Fitz-Hugh added, “For over 50 years, we built our reputation on delivering tailored surety solutions and exceptional service to our clients. We are thrilled to join Amynta, who shares our client-focused culture and commitment to excellence, positioning us for continued growth in delivering for our clients.”

https://www.reinsurancene.ws/amynta-group-to-acquire-surety-broker-international-sureties/

SafeTree Launches Landmark Report and AI Tool to Accelerate Growth of Surety Bonds in India

Thu, 11 Sep 2025 15:40:00 -0400

NEW DELHI: Sept. 11, 2025 /PRNewswire/ -- In a significant step toward enhancing India's infrastructure financing ecosystem, SafeTree Insurance today launched its flagship report, 'Insurance Surety Bonds in India: From Policy to Practice,' alongside a new AI-powered underwriting tool that aims to simplify and scale the adoption of surety bonds. The launch was part of a workshop on the Implementation of Insurance Surety Bonds and e-BGs organised by National Highways Authority of India (NHAI), held in New Delhi.

https://www.ptinews.com/editor-detail/SafeTree-Launches-Landmark-Report-and-AI-Tool-to-Accelerate-Growth-of-Surety-Bonds-in-India/2905724

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Aon report: Insurance and surety bonds gain importance in Romania’s construction market

Mon, 08 Sep 2025 22:17:38 -0400

Insurance and surety bonds are playing an increasingly essential role in the sustainable development of the construction market, according to Aon’s 2025 Construction Insurance and Surety Market report. The study comes against the backdrop of inflationary pressures, economic volatility, and large-scale projects involving both public and private funding.

In Romania, construction remains one of the most dynamic sectors, but risks are intensifying year after year. Companies face a shortage of skilled labour, rising material prices, political and economic instability, and delays in accessing European funds, particularly from the PNRR programme.

The adoption of green technologies and digitalisation, necessary for competitiveness, adds further costs. Compared with mature markets such as Germany or France, where sustainability and digitalisation are already standard, Romania is still consolidating.

“The construction sector is an important driver of Romania’s economy, but also one of the most vulnerable to risks: from rising costs and labour shortages to delays in execution and financing issues. In an environment where the sustainability of projects is being tested, surety bonds and insurance can no longer be treated as mere contractual obligations. They become strategic tools for protecting capital and ensuring project completion,” said Eugen Anicescu, CEO of Aon Romania.

Globally, the report points to a sharp increase in demand for insurance and surety products, especially in public infrastructure projects financed through European and national funds. The surety market is expected to grow by around 5 percent annually, reaching USD 30 billion by 2030.

In Romania, demand for surety bonds has already increased significantly over the past 12 months, following the insolvency of several major players. Road and rail infrastructure are the most active segments, with PNRR-financed projects requiring strong guarantees. The most requested products include bid bonds, performance bonds, advance payment bonds, and maintenance bonds. Surety insurance is also gaining traction among SMEs due to its flexibility compared with bank guarantees.

“In Romania, we are seeing growing demand for surety bonds, particularly in large infrastructure projects, where eligibility requirements are becoming stricter. Bid bonds, performance bonds, and advance payment bonds are mechanisms that enable companies to access major contracts and provide trust to their partners. Our role is to deliver tailored solutions that help them complete projects on time, avoid blockages, and protect their capital,” said Silvia Serrano Cabrera, Executive Director & Head of Construction and Surety Bonds Practice, Commercial Risk Solutions.

The report also notes a clear shift in mindset: companies are moving from reaction to prevention, integrating risk management from the design phase, collaborating more closely with brokers, and using digital tools for monitoring and reporting.

“The local market has huge potential, but to unlock it, companies must adopt an integrated vision of risk. Surety bonds and insurance are no longer just a checkbox in project documentation, but a real resource that allows them to attract financing, win tenders, and remain competitive in an increasingly demanding environment,” added Serrano Cabrera.

Aon’s findings also address common myths, such as the perception that insurance is merely a formality for tenders or that surety policies are difficult and costly. In reality, they are becoming more accessible, especially for small and medium-sized projects, and play a growing role in providing financial protection.

https://www.actmedia.eu/financial-and-banking/aon-report-insurance-and-surety-bonds-gain-importance-in-romania-s-construction-market/115674