BestWeek: Subcontractor Default Insurance Makes Inroads in Surety Industry.OLDWICK, N.J. -- When subcontractor default insurance initially was introduced in 1995, it was marketed principally as a substitute for performance bonds. More than 10 years later, the product has gained ground on its own as an effective means of managing the risks of large and sophisticated contractors, a niche market A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. where bonding capacity is seriously lacking, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. an article in the Sept. 11 BestWeek. Rob Rapp, who is co-director within Aon's Construction Services Practice Group, said contractors initially were driven to the insurance product when they couldn't find adequate capacity in the surety marketplace. Now, he says, it's the distinctive benefits, which have become well known within the construction marketplace, that are driving the product's popularity. Also in BestWeek, a look at how electronic communications are vital legal evidence when disputes arise. E-mails, even cell phone records, are surprisingly difficult to destroy, are practically unalterable without leaving evidence of tampering tampering The adulteration of a thing. See Drug tampering. , and are fast becoming many judges' evidence of choice. Also featured in this week's BestWeek is Best's Insurance Composite Index Composite Index A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known simply as a "composite". , which finished the week of Sept. 7, 2006, at 1,128.12, up 6.00% from a year ago. The composite index reflects the performance of 132 insurance stocks. The week's top performers were Atlantic American Corp.; Specialty Underwriters' Alliance Inc.; Donegal Group Inc.; American Safety Insurance Holdings Ltd.; and NYMAGIC Inc. The week's bottom performers were National Security Group Inc.; FPIC FPIC First Professionals Insurance Company (Jacksonville, FL) FPIC Field Programmable Interconnect FPIC Federal Partnership for Interoperable Communications FPIC Field Programmable Interconnect Chip Insurance Group Inc.; Sierra Health Services health services Managed care The benefits covered under a health contract Inc.; American Physicians Capital Inc.; and Harleysville Group Inc. BestWeek is published by A.M. Best Co. for insurance professionals. To subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day" subscribe, take buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company"; BestWeek, please call A.M. Best's customer service department at (908) 439-2200, ext. 5742, or e-mail your request to customer_service@ambest.com. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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