I understand that I get robbed elsewhere in life :-)

But here's where I'm missing something-- I looked up a random property/casualty insurer and they pay out 74% of premium in claims. Then in the other thread, Robert says that it is "mainly the title search" that distinguishes title insurance from other types of insurance.

So let me do some math here.  If the 5% figure is right, on average $75 will be paid out to me, the consumer, on this $1500 in your example.  Now if I subtract out the $300 for the search, which removes the main value added service inherent to this type of insurance according to my (admittedly limited) understanding, that leaves $1200... of which I get $75 back on average.  That's still only about a 6% loss ratio... still looks mighty small compared to the 74% that the property/casualty insurer pays out.

What am I missing?  Why can't I get my own title search and then buy insurance from a company that asks me one question: "Have you had a title search done?"  If you check the box & sign, they sell you inurance that has a 74% payout ratio, which in your example would cost about $100...