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Line of business · Surety
Surety: issue guarantees with real control of accumulated risk
Surety is not just another policy: here the insurer answers to a beneficiary for a principal’s default, and the risk is managed as credit, not statistical loss experience. Hermes models the three parties of the operation, controls risk accumulation by principal and group, integrates solvency analysis and routes each operation to the right approval committee.
What kinds of guarantee you can manage
- Guarantees to public administrationsBid, performance, advance-payment and retention bonds for public procurement.
- Technical & private-market guaranteesContract performance between companies, supply and maintenance.
- Customs & tax guaranteesSecuring obligations before the tax and customs authorities.
- Other bondsRental, judicial and bespoke guarantees according to the secured obligation.
How Hermes manages it
- Principal–beneficiary–obligation modelEach guarantee records the principal, the beneficiary and the secured obligation, with its amount, term and conditions.
- Risk-accumulation controlLimits and accumulated exposure by principal, group and line, with blocking when the authorised aggregate is exceeded.
- Solvency analysis at underwritingCompany data and credit risk at quote time via Iberinform integration.
- Decision committeesOperations above threshold routed to approval committees with full decision traceability.
- Guarantees & counter-guaranteesRegistry of counter-guarantees, guarantors and real guarantees tied to each operation.
- Term, cancellation & recoveryControl of the bond lifecycle — issuance, extension, cancellation and release — and recovery from the principal after a call.
Why Hermes for Surety
Built for credit risk
Controls aggregates and exposure, not just standalone policies — the difference between a generic core and one that understands Surety.
Traceable decisions
Every committee approval is documented — key for audit and reinsurance.
Integrated reinsurance
Treaty and facultative cession, bordereaux and statements for your surety reinsurance programme.
Frequently asked questions
- Does Hermes control accumulated risk by principal?
- Yes. It manages limits and accumulated exposure by principal, group and line, blocking operations that exceed the authorised aggregate.
- Is the principal’s solvency analysis integrated?
- Yes, through the Iberinform connection to obtain company data and credit risk at quote time.
- Can approvals be routed to a committee?
- Yes. Operations above a threshold are routed to approval committees with full traceability of the decision.