Saturday, April 10, 2010

Title Insurance Exposed! An Open Letter to the Title Insurance Industry

Posted by Pat Kitano at 10/29/2006 10:46 AM
In its upcoming issue, Forbes publishes an exposé on the title insurance industry's outlandish margins that seem so obvious to anyone associated with real estate. It's an "On The Cover" story and the first impact article I've seen about the industry from a major business magazine.

I've been making waves about the title insurance industry for the past couple of years so I don't need to comment on the article, it's an aggregation of these various well known facts and news items - the industry has unbelievable 5% payout ratios, kickbacks/gifting do happen, record profitability is almost analogous to the oil companies' last quarter earnings.

Instead, I'll propose what title insurance companies should do next in this open letter to them (pardon the length of the article, you may want to print it out):

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Dear Title Insurance Companies:

In California, you've been under pressure from Insurance Commissioner John Garamendi to lower your rates that have been escalating proportionately with our booming housing market over the past five years. He's threatened legislative action to lower the rates, but it's possible you'll get a reprieve from the next insurance commissioner to be elected next week here.



With graphs (c/o of the Forbes article ) like the above educating the consumer, some sort of rethinking is going to happen. Parker Kennedy, CEO of First American Title , reveals as much with this quote from the Forbes article:

"Today anyone can instantly learn a property's square footage, its sales price history, even view satellite photos, at virtually no cost. If records are instantly accessible and accurate, the need for title insurance will fade away. "Eventually insurance won't be an important component of the product," he (Kennedy) allows."

Yes!! that said... read more

2010 U.s. Direct Title Insurance Industry Report-Aarkstore Enterprise

The U.S. Direct Title Insurance Industry report, published annually by contains timely and accurate industry statistics, forecasts and demographics. The report features 2010 current and 2011 forecast estimates on the size of the industry (sales, establishments, employment) nationally and for all 50 U.S. States and over 900 metro areas. New to the report this year are: financial ratios, number of firms and payroll estimates. The report also includes industry definition, 5-year historical trends on industry sales, establishments and employment, a breakdown of establishments, sales and employment by employee size of establishment (9 categories), and estimates on up to 10 sub-industries, including guarantee of titles and real estate title insurance.

Table of Contents :

Users' Guide
Industry Definition and Related Industries
Industry Establishments
Sales and Employment Trends
Financial Ratios
Establishments
Firms and Payroll

Sub-Industries - 2009 Estimated Industry Sales ($Millions)
Sub-Industries - 2009 Estimated Number of Establishments
Sub-Industries - 2009 Estimated Number of Employees
5-Year Trend - Estimated Industry Sales ($Millions)
5-Year Trend - Estimated Number of Establishments
5-Year Trend - Estimated Number of Employees

2010 U.S. Metropolitan Areas - Estimated Number of Establishments
2010 U.S. Metropolitan Areas - Estimated Industry Sales ($Millions)
2010 U.S. Metropolitan Areas - Estimated Number of Employees
2011 U.S. Metropolitan Areas - Estimated Number of Establishments
2011 U.S. Metropolitan Areas - Estimated Industry Sales ($Millions)
2011 U.S. Metropolitan Areas - Estimated Number of Employees
2010 U.S. States - Estimated Number of Establishments

2010 U.S. States - Estimated Industry Sales ($Millions)
2010 U.S. States - Estimated Number of Employees
2011 U.S. States - Estimated Number of Establishments
2011 U.S. States - Estimated Industry Sales ($Millions)
2011 U.S. States - Estimated Number of Employees
Definitions and Terms

For more information please visit:

http://www.aarkstore.com/reports/2010-U-S-Direct-Title-Insurance-Industry-Report-40340.html

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