Despite an overall decline in sales and revenues, many firms managed to come out ahead by cutting their costs and taking advantage of new opportunities. The overall number of title insurance policies issued decreased, as did their associated premiums, though refinance and foreclosure activity remained historically high.
The title insurance industry experienced a drop in both sales and revenue in the second quarter of 2020. While the industry saw significant declines in the number of title insurance policies issued, premium income dropped only slightly. The title insurance market saw strong growth in refinance and foreclosure activity, however, which allowed some companies to remain profitable and even grow.
As with many industries in 2020, costs had to be cut in order to maintain profitability. Many title insurance firms reduced their expenses by reducing staff and implementing remote working policies. Additionally, title insurers took advantage of digital processes such as e-recording and virtual closings which, when adopted, could reduce costs and improve efficiency.
While the industry has been able to weather the storm due to these measures, it should still be aware of possible challenges going forward. Regulatory requirements and compliance issues could limit digital processes, for example. Additionally, a rise in interest rates, changes in the political environment, and economic unrest could have an impact on the title insurance industry.
Overall, the title insurance industry has fared well during the pandemic. Sales and revenues saw a drop, but costs were reduced and new opportunities were taken advantage of. This allowed many firms to remain profitable despite the difficult conditions. However, challenges may still arise in the future and the industry should remain vigilant about adapting to changing conditions.
This article was contributed on Nov 24, 2023
