Survey reveal a significant increase in survey respondents’ holding cyber liability insurance coverage compared to those who completed the
. Nearly three-quarters (72%) of respondents indicated they have a form of cyber liability insurance coverage—a significant increase over respondents to the NASBP IT Survey conducted in 2013, in which only 48% of total respondents indicated they had cyber liability insurance coverage.
The difference was most dramatic for agencies with less than $1,000,000 in annual surety premium. Nearly 71% indicated having coverage in comparison to the 38% of the respondents posed the same question in the 2013 NASBP IT Surve
y. This is just one of several trends the survey identified.
Download the 2016 NASBP IT Survey Results, by clicking here.
Other key findings were:
More than half (58%) of respondents indicated it would be either useful or very useful if their bond processing product or service offered the ability to import documents using data standards:
Three quarters of respondents (75%) indicated using data standards would save them up to 5 hours per month.
Respondents with more than $3,000,000 recognize the need for data standards, with nearly two-thirds (64%) indicating it would be useful or very useful.
Nearly three-quarters (72%) of survey respondents have not issued an electronic-only Performance/Payment bond to a client:
Survey respondents with less than $1,000,000 in annual surety premium were less likely (82%) to have issued an electronic-only Performance/Payment Bond to a client than respondents with greater than $3,000,000 in annual surety premium.
When asked which Agency Base Surety System they use, nearly half (42%) said they were not using one:
Nearly one-quarter of respondents (21%) indicated they are using surety companies’ systems.
NASBP Partnered with ACORD to Conduct IT Survey
This year is the first time NASBP partnered with the Association for Cooperative Operations Research and Development (ACORD), which distributed the 2016 NASBP IT Survey
as part of the larger, ACORD Insurance Digital Transformation Study. ACORD is a global, nonprofit insurance association whose mission is to facilitate the development and use of standards for the insurance, reinsurance and related financial services industries.
The larger survey, the ACORD Insurance Digital Transformation Study, received over 6,000 survey responses, which broke down as follows: retail agents: 70%, brokers/managing general agents (MGAs): 10%, carriers: 7%, clients: 4%, solution providers: 4%, and others: 5%. Of all the respondents, 106 indicated surety is a significant part of their agency and answered the NASBP IT Survey questions. The response rate to the NASBP IT Survey doubled in comparison to the response rate to the 2013 NASBP IT Survey
, in which 53 responses were analyzed. Of those 106 that responded, 54% projected annual surety premiums of less than $1,000,000; 19% projected annual surety premiums of between $1,000,000 and $3,000,000; and 27% projected annual surety premiums of over $3,000,000.
As with past NASBP IT surveys, analysis of this fifth edition of the NASBP IT Survey
identifies trends among the survey respondents and compares the results with the prior survey, the 2013 NASBP IT Survey
Since 2006, the NASBP Automation and Technology Committee has sought to learn how new technological products and services solve common industry challenges. Each NASBP IT survey has been an important tool in discovering and identifying trends of bond producers’ day-to-day operations. NASBP and the Committee would like to thank everyone who participated in the 2016 NASBP IT Survey
For more information on the results from the NASBP 2016 IT Survey
or about the Committee, contact Dave Golden, NASBP Director of Technology, at email@example.com
Joshua Etemadi is the Sales Manager of the NASBP Member firm of Construction Bonds—A Division of Murray Securus in Herndon, VA. He can be reached at 703.934.1000 or firstname.lastname@example.org