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[-] Error Rates - Lynn Hammett/SC (5 replies)
2/8/2006 3:16:43 PM (2518 views)
Re: Error Rates - George Booth/OH
2/8/2006 5:50:08 PM (5139 views)

Here is a little information in regards to your question. It is a rather broad interpretation that does not isolate the causes of errors, but which resulted in a payout.

Industry profitability

The title insurance industry is a profitable one. In 2003, according to ALTA, the industry paid out about $662 million in claims, about 4.3% percent of the $15.7 billion taken in as premiums. By comparison, the boiler insurance industry, which like title insurance requires an emphasis on inspections and risk analysis, pays 25% of its premiums in claims.

Comparing claims with premiums tells only part of the story, since, for example, title insurance companies have marketing expenses not incurred by the boiler insurance industry. But the industry's profitability is also hinted at by the repeated instances of state regulators uncovering cases where title insurers have engaged in illegal marketing tactics. Although owners are free to shop around for title insurance, many owners defer such decisions to lenders or real estate agents, and title insurance companies have sometimes used illegal tactics in marketing to those decision-makers. Illegal tactics noted in a CNN/Money article include kickbacks, free vacations, and the free use of office space and equipment. The article noted that in 2005 alone over a dozen title insurers settled with regulators for tens of millions of dollars over these practices.

Further evidence of the industry's profitability can be found by comparing the title insurance costs in the 49 states where such insurance is issued with the costs associated with the state-run Title Guaranty Program in Iowa, where title insurance is illegal. The program is run by the Iowa Finance Authority. It costs $110 for up to $500,000 in coverage in the state; after adding costs for the services of an abstractor (who does the research on the property) and the legal fees, such a title guaranty costs about $400.00, versus the $1,100.00 paid for that same home in other states (based on figures cited by the Iowa Bar Association).

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Re: Error Rates - Lynn Hammett/SC
2/8/2006 6:38:55 PM (3590 views)
Re: Error Rates - Robert Franco/OH
2/9/2006 11:42:41 AM (3577 views)
Re: Error Rates - Lynn Hammett/SC
2/9/2006 2:43:00 PM (3595 views)
Re: Error Rates - Robert Franco/OH
2/9/2006 5:01:16 PM (3485 views)

[+] Policy Writing - George Booth/OH (7 replies)
2/8/2006 11:54:01 AM (2431 views)

[+] Another judgement question - Lynn Hammett/SC (7 replies)
2/8/2006 10:53:11 AM (2527 views)

Just checking - Tammy Knight/MO
2/7/2006 10:30:25 PM (2130 views)

[+] Outrageous Copy Costs - Danielle Nelson/WI (11 replies)
2/7/2006 1:06:16 PM (2594 views)




[+] Jay - J Nisonger/CA (8 replies)
2/7/2006 3:34:54 AM (3578 views)

Best Company of the Month! - J Nisonger/CA
2/6/2006 12:18:40 PM (2019 views)

[+] CONGRATULATIONS, STEELERS!!! - Scott Perry/PA (7 replies)
2/5/2006 10:11:45 PM (2504 views)

Thank You Amerisearch (f/k/a) - Lisa Ramsey/TX
2/4/2006 12:16:34 PM (2060 views)

[+] hand held scanners - Robert Breakell/CT (9 replies)
2/3/2006 7:05:56 PM (2417 views)

Feedback/Company Reviews - Robert Franco/OH
2/3/2006 11:12:38 AM (1973 views)

[+] USA Map - Smitty Strickland/SC (6 replies)
2/2/2006 6:41:35 PM (2532 views)

[+] Judgment question for abstractors - dotty foehrenbach/PA (13 replies)
2/2/2006 4:29:15 PM (2488 views)

[+] Title Source/Zen Title $$ - John OConnor/IL (6 replies)
2/2/2006 11:35:13 AM (2565 views)

[+] Richmond Monroe Research - Julie Jasiunas/WI (16 replies)
2/2/2006 11:10:51 AM (2423 views)


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