Digital Bonds: How Technology Is Reshaping the Surety Market

15 May 2025

A Market Investing in Technology

The surety industry — long characterised by paper-based processes, bilateral negotiations, and slow turnaround times — is undergoing a technology-driven transformation. Industry surveys published in 2024 found that 73% of surety companies were planning investment in digital and analytical platforms, and 68% of bond clients had expressed a preference for receiving bonds electronically.

This shift is not simply about convenience. Digitisation is changing the economics of bond issuance, compressing timelines, and enabling surety providers to manage risk more effectively through data analytics and automated underwriting.

What Digital Bond Issuance Looks Like

In its most developed form, digital bond issuance means a contractor can apply for a performance bond or advance payment bond online, receive an automated underwriting decision based on submitted financial data, and receive the bond electronically — without the physical document handling, courier costs, and administrative delays that have characterised traditional issuance.

This model is already operational in some domestic markets, particularly in the US and parts of Europe. Platforms like Bond-Pro and others have demonstrated that the technology exists to streamline the purchase process significantly. The challenge is extending this capability to cross-border transactions in emerging markets — where the complexity of local requirements, languages, and institutional relationships adds friction that technology alone cannot yet resolve.

Regulatory Support for Digital Bonds

Governments and industry bodies are increasingly legislating to support digital bond issuance. The International Credit Insurance and Surety Association (ICISA) has formed working groups to standardise the issuance process, including online registration and signature verification. Several jurisdictions have enacted or are developing legislation to give electronic bonds the same legal force as their paper equivalents.

For international contractors, this trend is broadly positive — it signals that the administrative barriers to obtaining bonds are reducing. But the transition is uneven. In many emerging markets, paper bonds remain the norm, and the employer's requirements will dictate the form that is acceptable.

How Solidum Global Works

Solidum Global's enquiry process is fully digital — from initial submission to partner introduction. We do not require paper correspondence to assess your requirement or make an introduction. For contractors in markets where digital processes are preferred, our model supports efficient and transparent engagement. Submit an enquiry and we will respond promptly.

Reference: WTW Insurance Marketplace Realities — Spring 2024 Surety Update: wtwco.com/en-us/insights/2024/05/insurance-marketplace-realities-2024-spring-update-surety

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