AM Best has revised its market segment outlook on the U.S. title insurance industry to stable from negative due to its exceptional performance in 2020 despite the pandemic and its inherent challenges.
The Best’s Market Segment Report, “Market Segment Outlook: U.S. Title Insurance,” notes that the outlook had been revised to negative in April 2020, prompted by the sudden and substantial U.S. economic slowdown as a result of the COVID-19 pandemic. According to the report, the title insurance industry proved to be far more resilient than anticipated in the wake of the sudden economic slowdown and lockdowns brought about by the pandemic, and that future prospects should continue to benefit from continuing housing market and economic trends.
In 2020, the title insurance industry proved to be the most profitable segment in the property/casualty industry, as low interest rates and record-low mortgage rates led to a refinancing and home-buying surge in the latter half of 2020, and furthered the business activities of title insurers.
AM Best expects the residential real estate market to remain strong and U.S. monetary policy to remain accommodative in 2021. The sudden acceleration toward greater workplace flexibility and work-from-home options nationwide should further fuel home-buying activity in 2021. Given that homeowners have more equity in their homes, default levels should not elevate as in the housing crisis of 2007-2009.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=306011.
For a video on the U.S. title insurance industry outlook with Kourtnie Beckwith, AM Best financial analyst, please visit http://www.ambest.com/v.asp?v=ambtitle221.
To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
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