Two thoughts – #1 – Title insurance is a single premium product. The agent retains 80% to 85% of the premium, and provides commensurate services, this leaves 15% for the insurance company to pay premium taxes (3%), all losses (say 5%), set aside a statutory premium reserves of $0.125 per thousand of exposure plus one $1, pay overhead and hopefully make a profit.
#2 – And the reason that no one has heard of a title loss is because the agents and insurance companies do a great job. The losses that do occur can be reported decades after the properties were purchased.
#3 – on a 30 year mortgage at 5.5% or more, your interest payments over 30 years exceed the principal you borrowed. If you think title insurance is expensive, try borrowing money!
Oh, yes, if you did not pick up on it, every small business and small businessowner in NY that is dependent on title insurance just got a 15% DECREASE in their revenue.
Has anyone looked at the loss ratio for title insurance? We hear about loss ratios for property/casualty insurance and wonder why we never hear aobut title insurance loss ratios.
When they arbitrarily decrease the premiums in such a fashion without a major bunch of screaming from the title insurers it makes me wonder how profitable they are. For myself, I have never heard of anyone even needing title insurance.
I recently read an article re. title insurance which stated that claims paid out equal 4.3% of premiums! Auto claims are 68% of premiums and HMO Ins. pays out 86 cents of every premium dollar!!! Iowa has there state run program which costs buyers a flat $125 fee and then about $150 for a lawyer to search the title. I cannot remember with certainty where I read this but it may have been in a Seattle,Wash. newspaper article. Title insurance should be deregulated as the industry has been shown to be awash in kickbacks to R.E brokers,loan officers,builders and developers to the detrement of only one class of Americans,the underprotected home-buyer.
I have a question and I have googled for hours. If a person is added to a deed, and then they refinance (in New York) are the borrowers still entiled to a reissue rate? If so- where would I find that regulation?
Two thoughts – #1 – Title insurance is a single premium product. The agent retains 80% to 85% of the premium, and provides commensurate services, this leaves 15% for the insurance company to pay premium taxes (3%), all losses (say 5%), set aside a statutory premium reserves of $0.125 per thousand of exposure plus one $1, pay overhead and hopefully make a profit.
#2 – And the reason that no one has heard of a title loss is because the agents and insurance companies do a great job. The losses that do occur can be reported decades after the properties were purchased.
#3 – on a 30 year mortgage at 5.5% or more, your interest payments over 30 years exceed the principal you borrowed. If you think title insurance is expensive, try borrowing money!
Oh, yes, if you did not pick up on it, every small business and small businessowner in NY that is dependent on title insurance just got a 15% DECREASE in their revenue.
Has anyone looked at the loss ratio for title insurance? We hear about loss ratios for property/casualty insurance and wonder why we never hear aobut title insurance loss ratios.
When they arbitrarily decrease the premiums in such a fashion without a major bunch of screaming from the title insurers it makes me wonder how profitable they are. For myself, I have never heard of anyone even needing title insurance.
My name is Michael Lourie I am an executive recruiter with AC LION in New York.
Currently, we have a client who is interested in honest sales people
to sell title insurance for them.
Please contact me if you are a sale agent for title insurance and or if you may know people in the industry looking for employment.
Cheers,
Michael Lourie
AC Lion
62 West 45th Street
New York, NY 10036
212 845 9418 – Direct
michael.lourie@aclion.com
http://www.aclion.com
I recently read an article re. title insurance which stated that claims paid out equal 4.3% of premiums! Auto claims are 68% of premiums and HMO Ins. pays out 86 cents of every premium dollar!!! Iowa has there state run program which costs buyers a flat $125 fee and then about $150 for a lawyer to search the title. I cannot remember with certainty where I read this but it may have been in a Seattle,Wash. newspaper article. Title insurance should be deregulated as the industry has been shown to be awash in kickbacks to R.E brokers,loan officers,builders and developers to the detrement of only one class of Americans,the underprotected home-buyer.
I have a question and I have googled for hours. If a person is added to a deed, and then they refinance (in New York) are the borrowers still entiled to a reissue rate? If so- where would I find that regulation?