Title insurers are wrapping up a banner year, as rising home sales and prices helped the industry set another new record for premiums written during the third quarter and well into the fourth. The fourth quarter of 2020 was a very lucrative quarter for the title insurance industry, and title insurance premiums were up 33.6% from the fourth quarter of 2019. Data for the fourth quarter of 2021 have not been released as of yet.
The top underwriters are closing on a record-breaking year
The top underwriters in Q3 of 2021 by market share included First American Title Insurance Co., with 20.7%, Old Republic National Title Insurance Co., with 14.8%, Chicago Title Insurance Co., with 14.1%, Fidelity National Title Insurance with 13.5%, and Stewart Title Guaranty Co., with 8.2%. While these numbers all paint a promising picture for the industry, the title industry is still struggling with many of the same issues that other industries are struggling with right now like staffing shortages and outdated technology.
ALTA’s 2021 year-end report is around the corner
The title insurance industry generated $6.8 billion in title insurance premiums during the third quarter of 2021, according to ALTA’s latest Market Share Analysis. This is the best-performing quarter on record as title premium volume is up 32.5% compared with the same period a year ago. Numbers look extremely promising as we approach the end of 2021 with no signs of slowing down despite the national COVID-19 pandemic.
1. The title insurance industry is booming
“With $566.8 million of net income, the industry continued its strong financial position. Total assets were almost $11.6 billion, including $10.5 billion in cash and invested assets. Statutory surplus is almost $5.5 billion and statutory reserves are strong at over $5.0 billion” – HousingWire
2. Outdated technology is getting a much-needed update
“Not only are ALTA members handling record volume, but title industry professionals continue to help enhance the customer experience to make the settlement process more efficient,” ALTA CEO Diane Tomb said in a statement.
3. Title Insurance growth across all types
Independent title insurers as a whole grew by 30 percent to $1.331 billion.
4. The top 5 states are:
The five states with the largest yearly increases in title premium volumes in Q3 were:
- Texas, $943.6 million (37.7%)
- California, $788.6 million (23.9%)
- Florida, $730.1 million (49.1%)
- New York, $369.3 million (52.1%)
- Pennsylvania, $295.6 million (35.8%)
How 2022 will look for title insurance
Here’s a look at some of the trends expected in 2022 for the title insurance industry.
Title insurance is a multibillion-dollar business. The title industry, which includes title insurers and title agents, supports more than 300,000 jobs. Roughly forty‑two million real estate transactions took place nationwide in 2017. Despite the size of the industry, 2022 will be a year of innovation and adaptation for all title insurance agencies. The agencies that can change and adapt to new technology and current post-pandemic trends will be the ones at the top of the list in the near future.
Even though title insurance has been around for decades (since the 1950s), the industry is currently experiencing some major changes spearheaded by both current events like the COVID-19 pandemic, as well as technological advancements like blockchain technology. These are expected to make big waves in the industry as we move forward into 2022 and beyond.
About Tryon Title
For over 10 years, Tryon Title Agency has been dedicated to providing the best customer service and fastest turnaround times with incredible accuracy. As a local North Carolina business, we also pride ourselves on understanding the unique needs of your location and situation. With our full staff of in-house underwriters, you can expect revisions back within 10 minutes, and preliminary opinions back within the hour at the most!
Additionally, we have a dedicated team to search our five sites for prior policies, as well as a policy team known for getting final policies out within 24 hours!
Your requests are our top priority, and we are committed to honoring the time-sensitive nature of your needs, no matter how big or small the task.