Post by MMAJim on Jul 22, 2020 13:23:00 GMT -5
This shouldn't be controversial. We can try to grant everyone the courtesy of knowing something about their own little work sphere.
Surety Bonds - A large portion if our business is on construction projects, in particular, public construction. Short term we've been doing very well. Medium term, since we work with insurance agents with non-standard (smaller, weaker financials, credit issues) contractors, economic distress doesn't affect our business and can even help. So things may actually be better for us. Obviously, the longer term economic destruction would eventually dry up funding for public work, in which case we'd all be in the shitter.
Worst state so far = WA - agents told me repeatedly that they were shutting down private construction and even some public construction.
Most Surprising = CA - from the get go on COVID they were pretty strong on lockdowns, etc. However, they always kept construction moving, both public and private work. The only blip I heard there was permitting in places like L.A. was slowing down due to smaller staff size.
Other Surety Bonds - Our commercial bond department works with thousands of different types of bonds in all 50 states. Simple answer, not unexpected here. Small businesses are getting pummeled and new businesses (which we see a lot of) are deciding not to open at all. Some are waiting some never happening. Many businesses (gas stations, car dealers, restaurants/bars, many different types of businesses) are letting their bonds lapse at renewal and just waiting it out or dead already. Many insurance agents have said their entire book of small businesses (this is moreso CA) are getting wiped out and not coming back. Some insurance agencies have said they themselves are not coming back. There are all kinds of reasons this can happen, some no doubt are just able to retire and say F-this hassle. However, this is the real affects of lock downs. In the database open one tab over, I can find hundreds of businesses done, most likely not coming back. We're not even a huge company, we're very small in the big picture of the surety world.
That's the update from where I work.
Surety Bonds - A large portion if our business is on construction projects, in particular, public construction. Short term we've been doing very well. Medium term, since we work with insurance agents with non-standard (smaller, weaker financials, credit issues) contractors, economic distress doesn't affect our business and can even help. So things may actually be better for us. Obviously, the longer term economic destruction would eventually dry up funding for public work, in which case we'd all be in the shitter.
Worst state so far = WA - agents told me repeatedly that they were shutting down private construction and even some public construction.
Most Surprising = CA - from the get go on COVID they were pretty strong on lockdowns, etc. However, they always kept construction moving, both public and private work. The only blip I heard there was permitting in places like L.A. was slowing down due to smaller staff size.
Other Surety Bonds - Our commercial bond department works with thousands of different types of bonds in all 50 states. Simple answer, not unexpected here. Small businesses are getting pummeled and new businesses (which we see a lot of) are deciding not to open at all. Some are waiting some never happening. Many businesses (gas stations, car dealers, restaurants/bars, many different types of businesses) are letting their bonds lapse at renewal and just waiting it out or dead already. Many insurance agents have said their entire book of small businesses (this is moreso CA) are getting wiped out and not coming back. Some insurance agencies have said they themselves are not coming back. There are all kinds of reasons this can happen, some no doubt are just able to retire and say F-this hassle. However, this is the real affects of lock downs. In the database open one tab over, I can find hundreds of businesses done, most likely not coming back. We're not even a huge company, we're very small in the big picture of the surety world.
That's the update from where I work.