{"id":7441,"date":"2024-04-15T13:56:33","date_gmt":"2024-04-15T18:56:33","guid":{"rendered":"https:\/\/www.bbrown.com\/?post_type=insight&p=7441"},"modified":"2024-04-15T13:56:33","modified_gmt":"2024-04-15T18:56:33","slug":"two-minute-takeaway-surety-q2-2024-market-trends","status":"publish","type":"insight","link":"https:\/\/www.bbrown.com\/us\/insight\/two-minute-takeaway-surety-q2-2024-market-trends\/","title":{"rendered":"Two-Minute Takeaway: Surety | Q2 2024 Market Trends"},"content":{"rendered":"

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Property & Casualty<\/p>\n

\n Two-Minute Takeaway: Surety | Q2 2024 Market Trends\n <\/h1>\n\t\n <\/div>\t\t\t\t\t\n\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div>\n\n\t<\/div>\n\n\t\n[\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″]\n
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\n Two-Minute Takeaway: Surety | Q2 2024 Market Trends\n <\/h1>\n\t\n <\/div>[vc_column_text]<\/p>\n

Healthcare<\/h3>\n

There has been substantial growth in virtual care, leading groups participating in Medicare Advantage and State-run Medicaid programs to look for larger credit capacity towards their commercial payor contracts. These virtual programs are particularly low-risk, focusing on family care and preventative medicine, allowing surety companies to take on new customers without needing a substantial balance sheet or cash position, which was necessary in the past.<\/p>\n

Alternatively, with some significant losses realized by the commercial payor and healthcare insurance companies over 2023, these groups are expected to be less amenable to accepting surety versus the standard letter of credit.<\/p>\n

Construction<\/h3>\n

Construction continues to flourish, following the Infrastructure Investment and Jobs Act and investments from private equity firms into middle-market contractors and subcontractors. The most significant change going into 2024 and beyond continues to be the rising costs of labor and materials. Compared to five or ten years ago, similar jobs today are 50% more costly because of increased costs, resulting in some contractors needing more surety credit, thus having fewer jobs on their backlog. The combination of private equity funding and increased costs may leave some contractors in a complicated position when looking for surety credit. Having a backup surety carrier is recommended in this environment.<\/p>\n

Basel III<\/h3>\n

June of 2025 is rapidly approaching, and the final Basel III reform transition period will begin. These reforms will only apply to larger banks with more than $100B in total consolidated assets, which means those customers who bank with the larger firms will find more stringent requirements around letters of credit. This new framework has seemingly positive long-term changes for the overall economy. Still, the immediate short-term will show those utilizing extensive credit facilities that additional credit support outside the banking industry may be necessary.<\/p>\n

Insurance companies and their surety divisions are becoming prepared for the influx of credit-seeking companies anticipated next summer. It is encouraged to proactively find solutions to avoid\\ getting caught up in the race for credit.[\/vc_column_text][\/vc_column][vc_column width=”1\/3″][vc_single_image image=”1021″ alignment=”center”][vc_separator border_width=”2″ el_width=”60″][vc_column_text]<\/p>\n

Property & Casualty Team<\/h6>\n

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[vc_row row_style=”page-hero” full_width=”stretch_row_content”][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″][vc_column_text] Healthcare There has been substantial growth in virtual care, leading groups participating in Medicare Advantage and State-run Medicaid programs to look for larger credit capacity towards […]<\/p>\n","protected":false},"author":66,"featured_media":7430,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"insight_category":[110,34],"class_list":["post-7441","insight","type-insight","status-publish","has-post-thumbnail","hentry","insight_category-market-trends","insight_category-property-casualty"],"acf":[],"yoast_head":"\nTwo-Minute Takeaway: Surety | Q2 2024 Market Trends - Brown & Brown<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bbrown.com\/us\/insight\/two-minute-takeaway-surety-q2-2024-market-trends\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Two-Minute Takeaway: Surety | Q2 2024 Market Trends\" \/>\n<meta property=\"og:description\" content=\"[vc_row row_style=”page-hero” full_width=”stretch_row_content”][vc_column][\/vc_column][\/vc_row][vc_row][vc_column width=”2\/3″][vc_column_text] Healthcare There has been substantial growth in virtual care, leading groups participating in Medicare Advantage and State-run Medicaid programs to look for larger credit capacity towards […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bbrown.com\/us\/insight\/two-minute-takeaway-surety-q2-2024-market-trends\/\" \/>\n<meta property=\"og:site_name\" content=\"Brown & Brown\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bbrown.com\/wp-content\/uploads\/2024\/04\/LinkedIn-Post-Surety-2MT-Q22024-Brown-Brown-Retail-01-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.bbrown.com\/us\/insight\/two-minute-takeaway-surety-q2-2024-market-trends\/\",\"url\":\"https:\/\/www.bbrown.com\/us\/insight\/two-minute-takeaway-surety-q2-2024-market-trends\/\",\"name\":\"Two-Minute Takeaway: Surety | Q2 2024 Market Trends - 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