The Surety Blueprint™

THE SURETY BLUEPRINT ™

The Surety industry has many of the foundational pieces in place to achieve a future proof, frictionless, Agentic AI operating model. What's missing is the glue - uniform processes, standards adoption, and data governance.

This blueprint, developed by SuretyScience™, describes an optimized operating model that enables the Surety industry to achieve full automation and take advantage of the power of Artificial Intelligence. It outlines each crucial component, offers structured solutions, and fosters collaboration among the key contributors essential for success. Unlike previous initiatives that focused on theory or incremental improvements, the Surety Blueprint is outcome-driven roadmap that aligns processes, technology, and stakeholders.

Before Sureties can unlock the full potential of Agentic AI, three critical steps are required.

Implement standardized data frameworks like XBRL® and ACORD® coupled with uniform data sets from evergreened Bond Classifications, Obligee and Writing Company databases.
Modernize processes to enable Robotic Process Automation (RPA), reducing manual effort and improving operational efficiency and resiliency.
Catalog underwriting rules and capture decisions in AI consumable formats that accelerate accurate Machine Learning, ultimately resulting in Decision Intelligence Systems that dramatically increases decision speed and efficiency while reducing overhead costs and risk.

Surety Account Lifecycle

1. Surety Account Application

2. Surety Financials & Work in Progress Reports

3. Surety Account Underwriting & Management

4. Surety Decision Insights

Surety Bond Lifecycle

5. Surety Bond
Lead Generation

6. Surety Agency
Portfolio Visualization

7. Surety Bond Binding

8. Surety Bond Verification

Surety Data Transmission & Self Service

9. Downstream Surety Data To Agencies

10. Upstream Surety Data To Insurers

11. Direct Customer Instant Bond Application and Purchase

12. Direct Customer Account Application and Maintenance

Legend - Progress Indicators

Red

Little to No Progress

Orange

Some Progress; Stalled or Roadblocked

Green

Progress Being Made

Surety Account Lifecycle

What sets Surety apart from other lines of insurance is the Account component. It begins with collecting and validating financial and operational data, followed by risk assessment and approval. It includes ongoing performance tracking, ensuring stability, and that obligations are being met.

The Process

Account Application

Financials &
WIPs

Account Underwriting

Decision
Insights

1. Surety Account Application

Most Commonly Known as the Contractor Questionnaire

Current State

Although the information collected on Surety account applications is largely consistent across the industry, organizations rely on different data forms. There is no standardized schema, and list field values lack uniformity. In most cases, data is exchanged via email and then manually rekeyed into other systems.

Future State

A standardized account application form, unified data schema, and consistent source for list values—designed to seamlessly integrate and transmit Account application data in and out of both pre-qualification vendors and Surety automation systems.

Progress

SuretyScience is leading an initiative to drive the usage to electronic Surety Account applications.

Necessary Participants

Table of Contents

2. Surety Financials & WIPs

Financials Statements and Work in Process Information

Current State

In most cases, financial statements and work in process reports are exchanged via email and then arduously rekeyed into other systems. Although a widely utilized, standard schema exists named extensible Business Reporting Language (XBRL) to transmit this data, it has not been adopted by the Surety industry.

Future State

A streamlined XBRL taxonomy properly mapped for Surety. Enhanced functionality within construction accounting systems enabling Financial Statements and Work in Process (WIP) reports to be easily transformed and instantly transmitted. Reliance on manual entry, OCR and AI to interpret unstructured formats like emails, PDFs, and spreadsheets is eliminated.

Progress

SuretyScience fully endorses the industry’s ongoing work to establish XBRL as the standardized format for securely and efficiently transmitting Surety Financial Statements and Work‑in‑Process (WIP) Reports from principals to agencies and insurers, ensuring interoperability and data integrity across all systems.

Necessary Participants

Taxonomy

Vendor: Construction Management & Accounting Systems

Table of Contents

3. Surety Account Underwriting & Management

Surety Automation Systems and Decision Intelligence Systems

Current State

Unlike other insurance lines that have long leveraged mature vendor technologies, Surety has lagged behind. Many Sureties still rely on internally developed proprietary systems that replicate outdated, manual processes. These systems often lack adherence to industry standards, demand extensive human intervention —collapsing without significant manpower.

Future State

Historically, Surety vendor software implementation has been challenging, largely because no two Sureties operate identically. However, as the industry moves toward standardization to unlock AI capabilities, partnering with vendors that have the scale and resources to continuously enhance their platforms will be critical. Vendors are best positioned to navigate an increasingly complex technology landscape and deliver sustainable innovation. Sureties should maintain focus on their core strengths—building relationships and applying underwriting expertise—while leveraging technology to scale and increase premium growth.

Progress

Insurers have largely moved away from developing their own P&C policy, billing, and claims systems. Ironically, many have chosen to build homegrown Surety systems for a specialty line a business that is far more complex and drives a fraction of the premium. SuretyScience recommends that Sureties focus on their core competencies and do the same. As technology and AI continue to advance internally developed systems will become unsustainable for most Sureties.

Available Options

Table of Contents

4. Surety Decision Insights

Uniform Datasets Necessary to Power AI, Deliver Accurate Insights, and Accelerate Decision Making

Current State

Fragmented data silos resulting in incomplete, unverified, and inaccurate information, coupled with a lack of comprehensive risk insights.

Future State

Consolidated, high-quality data that empowers Artificial Intelligence to assist and/or automate Surety decision-making, deliver superior service, increased speed and throughput, significantly reduce operating costs, and minimize risk.

Progress

SuretyScience Patent Pending Risk and Decisioning Data Products Under Development

Key Contributors

Table of Contents

Surety Bond Lifecycle

The Surety bond lifecycle begins with issuance, where the surety professionals evaluate a principal’s qualifications and provides the bond to guarantee contractual obligations. Once issued, the bond remains in force while the principal completes the required work or obligations. The lifecycle term concludes with a renewal, bond release, or cancellation after all terms are satisfied and documentation is finalized.

The Process

Lead Generation

Submission

Binding

Verification

5. Surety Bond
Lead Generation

AI Powered Internet Marketing

Current State

Systems and processes for Surety lead generation through online channels are often controlled by individual companies and used exclusively to drive their own revenue growth. Currently, there is no centralized aggregation of Surety leads available to the industry.

Future State

Leverage modern technologies and proven methods to optimize digital engagement, identify high-value prospects, and accurately measure campaign performance across channels. Electronically deliver leads for pre-qualification and/or direct into a Surety system.

Progress

SuretyScience Patent Pending Surety Leads Generation and Distribution Product in the Planning Stage

Key Contributors

Table of Contents

6. Surety Agency
Portfolio Visualization

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Current State

Agents without binding authority face significant inefficiencies. They must log into multiple interfaces and often rekey bond information into other management systems. These gaps lead to higher agency costs and introduce InfoSec risks, as Surety operations involve storing highly sensitive data.

Future State

Progress

SuretyScience Patent Pending Product in the Planning Stage

Key Contributors

Table of Contents

7. Surety Bond Binding

Surety Specific Electronic Signature and Electronic Binding Processes

Current State

Most Surety bonds must be executed with a wet signature and an embossed seal to be legally binding. Additionally, bonds are required to be printed on specific forms mandated by the Obligees. There are thousands of these forms in use, and they are frequently updated. As a result, the bond execution process remains highly manual, time consuming, and many cannot be issued instantaneously.

Future State

Bonds issued electronically, authenticated through secure e-signatures, and/or instantly transmitted to Obligees without manual intervention. This eliminates the need for physical documents, wet signatures, and embossed seals, streamlining the entire bonding process.

Furthermore, the retirement of Obligee-specific bond forms replaced by standardized digital formats that ensure compliance, eliminate complexity, and reduce fraud.

Progress

Sureties have documents such as indemnity agreements signed electronically. But standard e‑signatures are generally insufficient for executing surety bonds, as most courts require signatures that meet surety‑specific authentication and validation standards. However, bonds executed through authorized surety e‑signature providers do satisfy these legal requirements.

SuretyScience is developing the Uniform Surety Data products needed to enable seamless integration with these specialized vendors, ensuring compliant, consistent, and fully digital bond execution.

Key Contributors

Surety Specific Electronic Signature, Bond Authentication, and Transmission to Government Procurement (USA)

Surety Specific E-Signature, Bond Authentication, and Transmission to Government Procurement

(Canada)

Surety Specific Electronic Bond Authentication (USA)

Table of Contents

8. Surety Bond Verification

Instant Bond Authentication and Status Inquiry

Current State

All parties must contact Sureties directly to verify a bond and/or obtain status information.

Future State

Anyone can enter a bond number into a standardized online Surety bond verification page, available across participating websites, and be instantly routed to the issuing Surety’s site, where real‑time bond status, key details, and verification results are presented.

Progress

Earlier initiatives have not resulted in meaningful industry adoption.

SuretyScience is leading an initiative to drive broad industry adoption of the Surety Bond Self-Verification Method.

Necessary Participants

Surety Bond Verification

Surety Bond Execution Form 503

Table of Contents

Surety Data Transmission

For several decades, the Surety industry has invested considerable effort in advancing interoperability and enabling more efficient data exchange between insurance companies and agencies. Despite this progress, the inherent complexity, specialized nature of surety and plethora of systems, continue to impede fully seamless, end‑to‑end data flow.

9. Downstream Surety Data To Agencies

Eliminate All Agent Reconciliation and Rekeying of Surety Data

Current State

Agencies are burdened with duplicative, labor‑intensive data entry across Surety carrier portals, surety‑specific agency management systems, billing and accounting platforms.

Future State

Surety transactions seamlessly flow from Insurance company systems to the most widely used Insurance Agency platforms — such as Applied Epic®, Vertafore® AMS360 and Sagitta, and Intuit QuickBooks®.

Progress

SuretyScience Patent Pending Product in the Planning Stage

Key Participants

Multi-Line Insurance Agency Management System

Table of Contents

10. Upstream Surety Data To Insurers

Eliminate All Insurer Reconciliation and Rekeying of Surety Data

Current State

Insurers face significant inefficiencies when ingesting and reconciling surety bond execution data, which brokers and agencies often transmit through individual, unsecured email messages. In many cases, data is received long after bond execution in the form of unstructured bordereaux reports. Even when submitted as structured Excel files, the data is frequently invalid or incomplete, requiring manual review and correction of more than 70% of all records.

Future State

A shift away from granting delegated authority to surety agencies in favor of insurer‑provided, real‑time web portals—an operating model successfully implemented with many other lines of insurance business.

At the same time, providing brokers that underwrite, execute and bill Surety bonds a standardized, seamless mechanism for transmitting accurate data to insurers.

Progress

Years of Continued Discussions; Little to No Progress

Required Contributors

Advocacy, Taxonomy, Backbone

Table of Contents

Surety Self-Service

While other lines of insurance have widely adopted direct‑to‑consumer models, Surety has not. This divergence is driven by several factors.

Surety insurers are often reluctant to compete directly for low‑premium, transactional commercial bonds against brokers and agencies that consistently refer higher‑premium contract bonds.
Most large‑premium contract bonds require underwriting and therefore cannot be instantly issued. Additionally, these types of bonds are typically not paid for by credit card due to the size of the premiums involved.
Very few surety bonds can be electronically issued. Many Obligees and courts still require bond documents to include a wet signature and a corporate seal in order to be enforceable.

11. Direct Customer Instant Bond Application and Purchase

Web Portals enabling clients to submit a bond application and receive instant decisions and immediate remit payment

Current State

The market is dominated by basic internet web forms that route requests via email to Surety agents or insurers, with few viable options for instantly purchasing a bond without human resources.

Future State

Direct‑to‑Customer (Principal) internet storefronts that enable users to select a desired Surety Bond product, apply, receive an underwriting decision (instantly for transactional bonds), quote, purchase the bond, and receive documents.

Insurers and brokers deliver white‑labeled portals that empower agencies to deploy embedded, Direct‑to‑Customer storefronts on their web site with minimal effort.

Progress

Although momentum has increased in recent years, overall adoption remains slow

Key Contributors

Table of Contents

12. Direct Customer Account Application and Maintenance

Secure web portals enabling direct Account application

Current State

Account application information and supporting documents that often include sensitive and/or personally data is sent via unsecure email. Periodic Financials Statements and Work in Process information is predominantly transmitted via unsecure email.

Future State

Direct‑to‑Customer (Principal) internet portals designed for secure Surety account application, maintenance, line requests, and compliant submission of sensitive supporting documentation, including financial statements and work in process reports.

Insurers and brokers deliver white‑labeled portals that empower agencies to deploy embedded, Direct‑to‑Customer Surety capabilities on their web site with minimal effort.