Surety insurance: double guarantee for you and your clients

The rules of the game change rapidly, and factors that once seemed distant—such as geopolitical tension or regulatory modification—today can have a direct impact on the progress of a project or the fulfillment of a contract.  

According to the Bank for International Settlements (BIS), we are experiencing a “critical moment” in the global economy, characterized by financial fragility, policy volatility, and the resurgence of protectionist trends. In turn, UNCTAD projects a global growth of 2.3% in 2025, placing the world economy on a recessionary trajectory. This is compounded by a level of political and trade uncertainty that has not been seen for decades. 

In practice, this context translates into frozen projects, revised contracts, and postponed strategic decisions. When confidence weakens, each business decision becomes more fraught. For that reason, having firm guarantees is not only advisable, but essential. Surety insurance provides an additional layer of security: it supports compliance and conveys strength from the very beginning. As highlighted by Solunion—the specialized joint venture that MAPFRE shares with Allianz Trade, with an A+ rating from S&P—, “this instrument allows us to provide coverage for complex transactions and issue guarantees in more than 55 countries.” 

Surety insurance is a policy through which an insurance company guarantees to a third party (the beneficiary) that the policyholder (its client) will fulfill a previously agreed obligation. 

This mechanism is widely recognized by public administrations and private companies alike, and it is applied in multiple areas: tenders, construction contracts, supply agreements, leases, tax or customs obligations, among others. 

As we were discussing, three parties are involved in this relationship: 

• The policyholder, which undertakes an obligation (such as carrying out construction work or providing a service). 

• The insurance company, which acts as a guarantor of compliance. 

• The beneficiary, which receives compensation in the event of a breach. 

Unlike other types of insurance, this policy does not cover a direct loss suffered by the policyholder; instead, it guarantees contractual performance. For this reason, it is not an indemnity policy but rather a performance guarantee mechanism that strengthens trust. 

The value of surety insurance goes far beyond its technical function. For the beneficiary, it means the peace of mind of knowing that, if something goes wrong, a solvent insurance company will respond. For the company that takes out the policy, it is a tangible way to demonstrate responsibility and commitment. 

This bidirectional guarantee helps to create safer commercial environments, reduce barriers to entry to new markets, and consolidate relationships based on trust. Especially useful in a context of generalized uncertainty, this type of policy projects a serious, prepared, and competitive business image. 

Furthermore, it goes beyond facilitating access local projects or public projects. “There have been occasions when companies sought solutions in foreign markets and found it difficult to obtain a local policy, but by doing so through Solunion, they have received support without any difficulties,” the company explains. 

Although it has traditionally been linked to large public works, the use of surety insurance has become more widespread. SMEs, self-employed individuals, technology startups, or exporters use it for local tenders, private contracts, leases, or customs commitments. Its versatility and adaptation to highly different sectors have made it a common resource also for smaller companies. 

Solunion emphasizes the possibility of offering customized integrated solutions, leveraging the synergies with their shareholders. “We can offer the client a combination of products that adds value, by cross-selling among different lines of business,” explains Juan José Montes, Group Head of Surety. “For example, we can offer a construction company a complete pack with a Solunion surety policy plus liability insurance and another for damages from MAPFRE.” 

One of the great advantages of surety insurance compared to other formulas is its lower financial impact. “Unlike bank guarantees, it allows companies to free up resources: it is not counted as a risk, such as those recorded in the CIRBE,” emphasizes Solunion. This represents a major relief for many companies that need to preserve this capacity for other investments. 

In addition, alongside the ease of contracting, the speed of issuance, and the international reach of Solunion, “our ability to respond in less than 24 hours is highly valued by companies that require agility when requesting guarantees,” adds Rocío Tello, head of surety at Solunion Spain. 

Furthermore, the coverage has no maintenance costs, unlike bank guarantees. “Payment is always based on what is used, with the premium prorated by days,” they explain. No pledges or personal guarantees from partners are required—only those of the company itself or its parent company. 

MAPFRE, through Solunion, markets this type of insurance in Spain and Latin America, offering coverage to companies of all sizes.  

Whatever your industry or your next goal, this guarantee can make the difference between staying on the sidelines or taking the step towards your next major project. 

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