Treasury Modernizes Surety Bond Rules

📢 Big news for public agencies and the surety industry:

Last year, for the first time in over 2 decades, the U.S. Department of the Treasury officially updated the rules governing federal surety bonds. The changes — effective August 9, 2024 — modernize how surety companies qualify and operate under 31 CFR Part 223.

🔍 Key takeaways from the new rule:
New categories of reinsurers are now recognized (including "reciprocal jurisdiction" and "alien" reinsurers)

Letters of credit are now accepted as security for excess risk
The Circular 570 publication cycle is shifting to August 1 annually

More clarity and consistency for federal and public sector procurement teams

📄 Read the full implementation guide from Treasury here:
👉 Final Rule Implementation Guide https://lnkd.in/dxkiHGSY (PDF)

💡 Why it matters for Surety2000 users:
This rule refresh signals continued support for secure, verifiable bonding practices — and aligns with the shift toward digital bond workflows across federal and state procurement.

In fact, even more federal updates are in the works - more on that in a follow up post coming soon…

Surety2000 is already aligned with these modernization efforts — offering public agencies and contractors a fully electronic, verified bond submission system that’s:

✔️ Trusted by surety companies nationwide
✔️ Secure and fraud-resistant
✔️ Compliant with current and evolving regulations

📬 If you're a public agency, now’s the time to ensure your bond intake process is built for this new regulatory landscape.
Want help digitizing your bond process? Click this link https://lnkd.in/dEYX6zUz

SuretyDIGIT Coalition Launches to Propel Digitization Efforts in the Surety Bond Industry

Surety2000 is excited to be a part of the SuretyDIGIT Coalition to propel digitization efforts in the surety bond industry. We encourage our business partners to join us in the coalition to further this effort. For more information about the coalition or to join, please visit https://www.suretydigit.org/ or contact information@suretydigit.org.

SuretyDIGIT Coalition Launches to Propel Digitization Efforts in the Surety Bond Industry

The SuretyDIGIT Coalition announced their launch today. The goal of the coalition is to bring stakeholders together to modernize and digitize surety bond operations. Due to the innate multi-party nature of the surety bond industry and the bonding process, insurance carriers (sureties), brokers, agents, solution providers, government agencies, obligees, (and others) need to work together to reinvent processes with a digital focus.

The coalition is committed to paving the path toward digital adoption and bringing together thought leaders and solution providers to impact the industry through digital transformation. SuretyDIGIT’s mission is to bring the industry together to demonstrate the support for saving the industry time and money by wide-spread digital adoption of the entire surety bond process.

“By joining the SuretyDIGIT coalition, NASBP and its members can stay at the forefront of surety bonding digital transformation and innovation with other interested parties. This critical, collective endeavor offers the promise of unlocking a digital future for surety bond processing and bringing needed efficiencies and added security to surety transactions,” said Mark McCallum, CEO of National Association of Surety Bond Producers (NASBP).

“At its core, the journey toward digitizing the surety bond industry is uniting all stakeholders and gaining alignment and uniformity. As the Surety Digit Coalition expands, so does the knowledge, expertise, and perspectives. Together, we are able to unite all stakeholders on a common path toward digital adoption,” said Peter Miller, President and CEO of The Institutes.

The coalition aims to bring all parties together to strategically align on a digitally focused future for the surety bond process, with an initial focus on:

• Digital signatures, seals and power of attorneys

• Digital signatures, seals and surety bonds

• Electronic delivery and authentication

The SuretyDIGIT Coalition welcomes prospective members and encourages organizations, individuals, solution providers, insurance organizations, and associations to join. The list of 20+ initial business members is available on the coalition’s website.

For more information about the coalition or to join, please visit https://www.suretydigit.org/ or contact information@suretydigit.org.

About SuretyDIGIT Coalition

The Surety Digitization, Innovation, and Transformation Coalition (SuretyDIGIT) is a group of aligned stakeholders – welcoming to government, surety industry partners, associations, and others – fostering a belief in the value of sharing conversations about driving the digital bond process. The coalition’s objective is to digitize key components of the surety bond process such as digital signatures, seals, POAs, bonds and their electronic delivery and authentication. For more information, please visit https://www.suretydigit.org/.

Bridget Craskey
craskey@theinstitutes.org
610-644-2100, ext. 7669

View source version on businesswire.com: https://www.businesswire.com/news/home/20240509019270/en/