bruntwork

Palomar Holdings has expanded into the surety insurance industry by acquiring First Indemnity of America (FIA). Completed on January 1, 2025, this decision adds new options to Palomar's portfolio and reflects its focus on improving operations and finding fresh opportunities.

BruntWork, a leader in outsourcing solutions, sees this as an ideal moment for insurers to use outsourcing to support growth and handle specialised needs.

Palomar's Investment in Surety Insurance

The acquisition introduces Palomar Holdings to the surety bond business, focusing on supporting small- and medium-sized contractors in the Northeast United States. This decision aligns with Palomar's plan to enhance its portfolio and take advantage of opportunities in specialised insurance. Including FIA's experienced team adds further value, bringing proven knowledge and reliable results.

Winston Ong, CEO of BruntWork, shares his insights: 'This shows how businesses can use outsourcing to handle growth effectively and enter new fields without being held back by internal constraints. Services like a property management virtual assistant are excellent examples of how insurers can streamline operations while maintaining focus on customer needs.'

The partnership allows Palomar Holdings to deliver solutions tailored to customer needs while strengthening its ability to compete in the industry.

What This Means for the Insurance Industry

Insurance providers actively search for new ways to grow revenue and reduce risks. Surety bonds, in particular, offer untapped potential, with predictions of consistent expansion between 2025 and 2030.

However, breaking into such specialised areas comes with challenges. Companies must comply with detailed regulations, build expertise in niche services, and create robust systems to support their operations. These hurdles have made outsourcing an effective tool.

Ong emphasises,'Working with specialised partners allows businesses to handle unique requirements without stretching their internal resources. For example, an accounting virtual assistant can help insurers secure compliance, manage accounts, and maintain precise financial records with minimal internal overhead.'

Outsourcing Gains Ground

Insurance companies increasingly turn to outsourcing for greater flexibility and operational support. Surveys show that over two-thirds of insurers plan to expand outsourcing within the next few years, particularly in areas such as underwriting assistance and claims handling.

The advantages are clear. Outsourcing helps reduce operational expenses by up to 30 per cent, freeing up resources for other initiatives. Companies also gain immediate access to skilled professionals and proven infrastructure, removing the need to build capabilities from the ground up.

Ong adds, 'Collaborating with the right partners enables insurers to focus on improving services while expanding their reach. Outsourcing solutions have proven effective across various industries, including healthcare, e-commerce, legal, and real estate. For example, when companies hire a virtual assistant for real estate, they can streamline administrative tasks, freeing up valuable time to focus on client relationships and core operations.'

A Focus on Progress and Growth

Palomar Holdings' entry into surety insurance signals its intent to pursue growth and bring new ideas to life. The skills FIA brings will help Palomar Holdings strengthen its position in specialised insurance. Outsourcing partnerships and virtual insurance assistants will enable efficient operations and adopting advanced tools.

This method could encourage other companies to explore similar paths. Success in these ventures will depend on balancing regulatory requirements, operational goals, and creative problem-solving.

Palomar Holdings' acquisition of FIA shows its focus on growth and adaptability. Combining internal resources with external partnerships creates a strong foundation for success in specialised areas. Insurers that adopt similar strategies will discover new ways to enhance their services and prepare for long-term progress.