OLDWICK, N.J.--(BUSINESS WIRE)--In this episode of AMBestTV, Fred Eslami and David Blades, both associate directors, AM Best, discuss how U.S. title insurers are navigating through the COVID-led upheaval in the economy and the steps carriers are taking to innovate and streamline operations. Click on http://www.ambest.com/v.asp?v=ambtitlebladeseslami1020 to view the entire program.
Blades said U.S. title insurers saw 17% growth in the first half of 2020 despite the pandemic, driven by strong home sales and refinancings.
“Favorable trends have helped boost the consumer demand for homes during this period,” said Blades. “Record-low mortgage rates and record-low foreclosure rates have been particularly impactful driving forces in the title insurance industry's premium growth. Additionally, the low mortgage rates have had a specifically significant impact on the industry, by either increasing the number of people seeking to refinance their homes, which has been another driver of title insurance premiums, or those looking to purchase new homes.”
Eslami highlighted the level of innovation in the title insurance sector.
“Technology and innovation are capital-intensive undertakings, which the benefits of cannot be seen for many years,” said Eslami. “AM Best expects expenses to increase because of the investment in technology, innovation and the time that it takes to actually have those measures come to fruition. Unless companies want to invest in new insurtech innovation startups, understanding the details of title insurance could take some time, as well.”
To access the related market segment report, titled, “Title Insurance Market Perseveres Amid Upheaval and Economic Uncertainty,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=301794.
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