Committee Updates | The ICISA INSIDER | April 2021 The ICISA INSIDER | April 2021
Update Committee Chairs Surety Committee Marlène Hertel The pandemic continues to influence our lives both personally and professionally, working and living under the same roof, giving up travels, restaurants visits and social life. We held our spring committee meeting virtually, all confined in our countries and felt a great need to meet again in person. Nevertheless, members are motivated to work with ICISA and the surety committee on supporting the economy, our industry, and our clients. If one year ago our concern was the uncertainty about the impact of the sanitary crisis, today we focus on the effects of the termination of the measures taken by the governments to support the economy. We are optimistic that this development could facilitate risk sharing with banks and even the access for sureties to certain products until now issued exclusively by the banks. But we are also aware that risk assessment and mitigation are significant challenges for surety underwriters in the hardening environment. Taking a decision based on information reflecting an extraordinary situation is not easy, the more important is support from experienced underwriters who went through several economic cycles. Education and people development could be part of our next discussions. Another important topic discussed during the virtual spring meeting was the terminology project, with the aim of a common understanding of terms used by insurers and re-insurers around the world. The working group is progressing well and has prepared a product catalogue including bond definitions and particularities. The structure is defined, and products are already described, but, as the range is infinitely wide, it is now time to invite the members to complete the catalogue.
Marlène Hertel Chair of the Surety Committee Company: AXA Switzerland
The product catalogue will also allow to identify where ICISA network for advocacy and lobbying could be used to improve the awareness of sureties. A good example is the energy sector which is in full expansion, especially with the development of the green and renewable energy. Regulations, governmental investments and subsidies constrain companies operating in the energy sector to provide a whole number of bonds, ranging from bid, performance through concession, dismantling bonds, or payment and trading guarantees. This creates excellent opportunities for our industry and an exciting topic for the surety committee considering the variety of bonds needed and their specificities. A relevant subject to be put on the agenda. This is just an overview of the most important matters that we will follow up in the near future, but the list is longer and will grow once members can meet again in person and benefit of the great networking we all know from ICISA.
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