OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, A.M. Best Senior Industry Research Analyst David Blades reviews a new special report that examines the economic factors that have led to a rebound for U.S. title insurers. Click on http://www.ambest.com/v.asp?v=title217 to view the entire program.
“Overall in the last few years, except for a dip in 2014, premiums in the title insurance industry have continued to go up from a year-over-year basis,” said Blades. “Through the third quarter of 2016, total direct premiums for the title insurance industry were up by 13%. Additionally, the current premium level is definitely well below that seen in 2005 at the end of the last housing boom. However, it has been increasing in the last several years.”
Blades believes that with wages increasing and the overall broad economy continuing to recover, these two factors, "offset the negative impact that could be had by rising mortgage rates.”
“If prospective home buyers have increased buying power, that could lead to more business for title insurers and possibly lead to premiums going up again in 2017,” said Blades.
To view the Best’s Special Report, titled, “Rising Mortgage Rates Could Dampen Housing Market Potential and Stall Title Insurance Market Growth,” go to http://www3.ambest.com/bestweek/purchase.asp?record_code=258520.
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