Wednesday, December 03, 2003
New Credit Risk Solution For Construction Surety Underwriters
(Kitchener, Ontario, December 3, 2003)
Covarity Inc., a developer of credit risk management solutions for the financial services industry, and Encore Technologies Inc., an integrated insurance solutions company, today announced that the two companies have signed a marketing agreement to extend Covarity's credit risk management solution offering to the North American construction surety market.
According to the Surety Association of America (SAA), surety companies have paid nearly $1.8 billion in claims in 2000 and 2001. Underwriting results have been poor for the past few years and the reinsurance capacity needed to support premium growth is tight. There is tremendous pressure on underwriters to reduce risk and contain costs, while continuing to growing their portfolios.
ClearSureTM is the first fully functional credit management outsource service for the construction surety business. The system provides underwriters with contractor financial reports and work-in-process schedules in real-time, already analyzed according to their individual underwriting rules. Reducing reporting time and compressing clerical duties associated with financial analysis represents a significant decrease in risk and cost that favorably impacts bottom line for surety underwriters, re-insurers and surety brokers.
"ClearSure brings incredible value to the surety underwriting process which is why we are working with Covarity on this initiative," said Scot Dalton, CEO, Encore Technologies. "Surety companies can spend less time focusing on manual administrative processes and more time focusing on the areas of their business that really matter-bond risk management and customer relationships."
"This agreement with Encore Technologies provides Covarity with the expertise it needs to ensure it delivers a solution tailored to the construction surety market," said Rod Foster, Vice President, Marketing and Alliances, Covarity. "Encore Technologies has extensive experience in the insurance industry, working with brokers and insurance companies, which is absolutely necessary in order to efficiently deploy the ClearSure solution to surety companies."
Surety companies provide bid and contract financial security to public and private owners and lenders in the commercial non-residential construction marketplace, a market worth $219 billion annually, according to the United States Department of Commerce.
About Encore Technologies
About Covarity Inc.
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