Good Afternoon and Happy New Year —
For me, New Years is often a time for both reflection and forward thinking. These past few years have seen so much change in all of our lives, that really, anything seems possible, but what about the world of title insurance?
Although the title insurance industry often gets a bad rap for being "antiquated," 2021 saw a lot of new developments in terms of technology being used to streamline and simplify the closing process. While many firms, such as First American and Doma, have gone all-in on technology development, hoping that easier to use tech tools that increase efficiency will help them increase their market share, other companies have taken a slightly different route.
The final months of 2021 saw Stewart Title, the smallest of the "Big Four" by market share, go on a serious buying spree. In November and December, Stewart acquired four title insurance companies: Pacific Northwest-based Rainier Title, New Mexico-based Las Cruces Abstract and Title, Michigan-based Devon Title Agency, and Chicago-based Greater Illinois Title Co. and its subsidiaries in 23 other states.
The acquisition of GITC is very strategic, as it takes market share away from Fidelity and Old Republic, since Greater Illinois Title had previously offered title insurance policies underwritten by Fidelity subsidiary Chicago Title Insurance and Old Republic.
By investing in key markets across the country, Stewart is clearly looking to regain some of its market share, which dipped from 9.6% at the end of 2020 to 8.2% in the third quarter of 2021, according to the American Land Title Association. However, like First American and Doma, Stewart has also been working to expand its tech capabilities through its acquisitions of data and analytics companies, PropStream and Informative Research.
So as we enter into this new year full of possibilities, which strategy do you think will result in the bigger market share pay off: M&A or tech development? And what are some of your grand predictions for the year ahead in the title insurance industry?
Brooklee Han
Real Estate Reporter
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