Surety Bond Quarterly - Fall 2016 - 25


NASBP IS COMMITTED to being part
of the development of surety data
standards. What are surety data standards? Surety professionals use data
standards every time they send information from one software program
to another, and this process takes
place behind the scenes, automatically and without any special action
on a bond producer's part. When
the information is sent from one
computer to the other, the receiving computer understands what the
information is and knows what to do
with it. This is the concept behind
interoperability, or the ability for systems and software applications to
communicate and exchange data.
To efficiently exchange information,
both sending and receiving computers need to understand the information being exchanged or "the rules
of the game," which is where data
standards have a role.
Data standards are the rules used
to format and define information so
that different operating systems or
software programs understand the
information being transmitted. To
illustrate how data standards can be
used in the surety industry, consider
the work-in-process example below.
When information is transmitted
electronically without data standards,
the receiving computer doesn't know
what each individual field means
in relation to the other fields. By
sending the computer the number
"12,113,470," the computer will not
know what that number represents,
because the computer requires some
context of that information, which
is what data standards provide. The
exhibit above shows the meta data,
or the defining information about
the data, of the number "12,113,470."
Using the meta data of the number,
the receiving computer understands
what that number represents and

Dimension

Entity

USD

Contract
#200

ABC
Contractor

Units

Millions

12,113,470

Decimals
Earned
Contract
Revenue

Concept

how the computer should process
that number. All of this happens
seamlessly within the computer and
without any additional input by the
surety professional.
Surety data standards
are critical to the surety
industry's future
Surety data standards can save time
and money. Today, the surety industry
is one of the least automated markets
in the insurance industry. Surety professionals are manually entering and
analyzing underwriting information,
manually entering bond applications or
requesting forms, and manually issuing bonds.The surety industry is a long
way from fully automating the process
of issuing a bond. However, by establishing standards for the transmission
of underwriting information, the surety
industry can lay a foundation needed
to automate some basic underwriting,
support, and administrative functions.
By automating these basic functions,
bond producers, underwriters, and
their support staff will significantly
improve efficiency and the speed of
response time.
Industry collaboration is key
NASBP is working with over one hundred different entities representing

Total Contract
Contract
Number

Estimated
Revenue

Estimated
Costs

Estimated
Gross Profit
(Loss)

200

$29,831,262

$22,771,956

$7,059,306

From Inception
to 12/31/2014
Period
standards organizations, software
and service providers, industry associations, government, surety agencies, carriers, contractors, certified
professional accountants, and many
other key stakeholders to make this
happen. The standards organizations
have the knowledge and experience
based on successful implementations
in other industries. You may be familiar with them:
* Association for cooperative operations research and development
(ACORD) - publishes and maintains
a library of standardized forms and
data standards for the insurance
industry. web: http://acord.org
* eXtensible business reporting
language (XBRL US) - global
standard for exchanging financial
information electronically. web:
http://xbrl.us
The NASBP Surety Forms Working
Group and XBRL Surety WIP Pilot
Working Group are stakeholders and
industry partners dedicated to making surety data standards a reality.
Where are we today?
The basic foundation for the surety
data standards is in place, and
the next step for the industry is to
encourage adoption and use. Visit
http://suretyautomation.org/ to view

From Inception to December 31, 2014*
Earned
Contract
Gross
Contract
Costs
Profit (Loss)
Revenue
$12,113,470

$9,246,924

$2,866,546

NATIONAL ASSOCIATION OF SURETY BOND PRODUCERS | WWW.NASBP.ORG

25


http://www.acord.org http://www.xbrl.us http://www.suretyautomation.org/ http://WWW.NASBP.ORG

Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2016

NASBP Upcoming Meetings & Events
2016-2017 Executive Committee
From the CEO: Success Comes with Sharing Perspective and Knowledge
Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
2016 NASBP Resource Directory
Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover1
Surety Bond Quarterly - Fall 2016 - cover2
Surety Bond Quarterly - Fall 2016 - 3
Surety Bond Quarterly - Fall 2016 - 4
Surety Bond Quarterly - Fall 2016 - 5
Surety Bond Quarterly - Fall 2016 - 6
Surety Bond Quarterly - Fall 2016 - 2016-2017 Executive Committee
Surety Bond Quarterly - Fall 2016 - From the CEO: Success Comes with Sharing Perspective and Knowledge
Surety Bond Quarterly - Fall 2016 - 9
Surety Bond Quarterly - Fall 2016 - Practical Insights: A Contractor’s Risk Management Portfolio Should Include a Commercial Crime Policy
Surety Bond Quarterly - Fall 2016 - 11
Surety Bond Quarterly - Fall 2016 - 12
Surety Bond Quarterly - Fall 2016 - 13
Surety Bond Quarterly - Fall 2016 - Rethinking the Change Order Process: NECA Foundation’s Guidelines Offer New Approach, Substantially Reducing Change Order Costs
Surety Bond Quarterly - Fall 2016 - 15
Surety Bond Quarterly - Fall 2016 - 16
Surety Bond Quarterly - Fall 2016 - Six Considerations in Underwriting Subdivision Bonds (Part 2 of 2)
Surety Bond Quarterly - Fall 2016 - 18
Surety Bond Quarterly - Fall 2016 - 19
Surety Bond Quarterly - Fall 2016 - Affirmative Action and the Office of Federal Contract Compliance Programs: What Surety Professionals and Their Contractors Should Know
Surety Bond Quarterly - Fall 2016 - 21
Surety Bond Quarterly - Fall 2016 - 22
Surety Bond Quarterly - Fall 2016 - 23
Surety Bond Quarterly - Fall 2016 - Surety Data Standards: What are They, and Why Should Surety Professionals Care about Them?
Surety Bond Quarterly - Fall 2016 - 25
Surety Bond Quarterly - Fall 2016 - 26
Surety Bond Quarterly - Fall 2016 - 2016 NASBP Resource Directory
Surety Bond Quarterly - Fall 2016 - 28
Surety Bond Quarterly - Fall 2016 - 29
Surety Bond Quarterly - Fall 2016 - 30
Surety Bond Quarterly - Fall 2016 - 31
Surety Bond Quarterly - Fall 2016 - 32
Surety Bond Quarterly - Fall 2016 - 33
Surety Bond Quarterly - Fall 2016 - 34
Surety Bond Quarterly - Fall 2016 - 35
Surety Bond Quarterly - Fall 2016 - 36
Surety Bond Quarterly - Fall 2016 - 37
Surety Bond Quarterly - Fall 2016 - 38
Surety Bond Quarterly - Fall 2016 - 39
Surety Bond Quarterly - Fall 2016 - 40
Surety Bond Quarterly - Fall 2016 - 41
Surety Bond Quarterly - Fall 2016 - Index to Advertisers
Surety Bond Quarterly - Fall 2016 - cover3
Surety Bond Quarterly - Fall 2016 - cover4
Surety Bond Quarterly - Fall 2016 - outsert1
Surety Bond Quarterly - Fall 2016 - outsert2
Surety Bond Quarterly - Fall 2016 - outsert3
Surety Bond Quarterly - Fall 2016 - outsert4
http://www.nxtbook.com/naylor/SBPQ/SBPQ0118
http://www.nxtbook.com/naylor/SBPQ/SBPQ0417
http://www.nxtbook.com/naylor/SBPQ/SBPQ0317
http://www.nxtbook.com/naylor/SBPQ/SBPQ0217
http://www.nxtbook.com/naylor/SBPQ/SBPQ0117
http://www.nxtbook.com/naylor/SBPQ/SBPQ0416
http://www.nxtbook.com/naylor/SBPQ/SBPQ0316
http://www.nxtbook.com/naylor/SBPQ/SBPQ0216
http://www.nxtbook.com/naylor/SBPQ/SBPQ0116
http://www.nxtbook.com/naylor/SBPQ/SBPQ0415
http://www.nxtbook.com/naylor/SBPQ/SBPQ0315
http://www.nxtbook.com/naylor/SBPQ/SBPQ0215
http://www.nxtbook.com/naylor/SBPQ/SBPQ0115
http://www.nxtbook.com/naylor/SBPQ/SBPQ0414
http://www.nxtbook.com/naylor/SBPQ/SBPQ0314
http://www.nxtbook.com/naylor/SBPQ/SBPQ0214
http://www.nxtbookMEDIA.com