For every $1 paid by a title insurance policy holder in 2016, just over 1 cent went to pay a claim…
In other words, almost 99 cents remained with title insurance companies after paid losses.
More Money in Their Pockets, Less in Yours
Title insurance traditionally pays very little in claims losses compared to other lines of insurance.
Texas sets a single rate for title insurance and does not allow insurers to set lower rates and compete for business from the consumers directly, resulting in higher prices. To help lower prices of title insurance, Texas must provide greater flexibility and competition to the rate regulatory system.
The state should also give citizens a full voice in the process by providing standing to the public at rate hearings, as with other lines of insurance, and allowing them the right to request a rate hearing be held to consider a rate change more frequently than five years.