Trends in the title insurance market show that while business is still strained, the tension is lessening and companies with strategic vision can begin to capitalize on the opportunities at hand, according to a new report from Demotech.
The Columbus, Ohio, rating agency notes that while paid losses are up, the amount of unpaid losses are declining, and that more new premiums are being written – and that income is on the rise.
However, Demotech warned that title companies have little margin for error with their surplus levels.
Underwriters with reduced capital reserves are at a higher risk for catastrophic losses, it notes. Also, losses related to title agent fraud are more likely in a bad economy.
"This combination and evidence of its devastating effects will hopefully lead the industry to unilaterally strengthening efforts at fraud protection, detection and mitigation," Demotech said.
Meanwhile, Demotech recently affirmed its financial strength ratings on four national title players, including Chicago Title Insurance Co. (a subsidiary of Fidelity National Financial); all three underwriting units of Old Republic International Corp.; and Stewart Title Guaranty Co.
