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Article: Surety: the end of a shrinking trend: future brightens for remaining serf-insured companies.(Upfront: news, updates and other emerging strategies from around the world)
- Article from:
- Risk & Insurance
- Article date:
- December 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 Axon Group. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Self-insured buyers of surety securities, faced with shrinking capacity in the bond market, face a world with fewer insurance options yet are being forced to post more collateral, according to surety market experts.
Some companies are having to post bonds, or letters of credit, of more than four times what they were posting just a few years ago. "Many are having trouble getting bonds at a reasonable price," said Kathleen D. Oliver, director of licensure and quality assurance for the Georgia State Board of Workers' Compensation.
She said her state, in which there are about 330 self-insured companies, has increased security guarantees that must be posted ...