(PRWEB) September 28, 2012
According to the 2012 Second-Quarter Market Share Analysis from American Land Title Association (ALTA), the leading trade association of title insurers, with the positive trend of the increased housing sales, the title insurance premiums increased throughout all the states in the United States in the 2nd quarter of this year compared with the same period of 2011.
The report said that title insurance premiums reached $2.76 billion in the second quarter of 2012, which is up close to 20% compared to the same quarter a year ago.
“Since the third quarter of 2009, the title insurance premiums fluctuate up and sown without a regular form,” said one of the escrow officers from ARCLand Title, “This is the second consecutive quarter that the premiums continue to increase versus the same quarter in 2011. It really shows a great improvement for the title insurance industry,” he said.
According to the premium data of 2011 from ALTA, the title insurance industry generated $9.47 billion in the title insurance premiums in 2011, down 1.5% from the previous year. The premiums of the second quarter in 2011 were $445 million. The title insurance premiums in the first three months of 2012 were to $2.32 billion, up from $2.25 billion in premiums reached in the same period of 2011.
Here are the top states that generate the most premiums in title insurance for the 2nd quarter of this year:
California: increasing 29.8% compared with $320 million of the same quarter of 2011, and totally generating $415.1 million.
Texas: increasing 16.6% over $286 million of the equivalent quarter of last year, and totally having $333.7 million.
Florida: increasing 17.4% compared with $186 million of the second quarter of last year, and getting $218.1 million.
New York: increasing 14.8% compared to last year’s $169 million, and totally generating $193.6 million.
Pennsylvania: increasing 16.8% compared with 2011’s $97 million, and totally generating $113.2 million.
During the second quarter of this year, there are four top states getting at least 35 percent increase of the premiums in title insurance compared with the equivalent of 2011. The four states are Utah, Illinois, Nebraska and Hawaii, and the average increase are 35%, 35.2%, 36.2% and 36.2% respectively.
From the data stated above, it is obvious that the title insurance premiums really got a tremendous increase. Today, the interest rate nearly hits the record low and the housing market gradually recovers while the increasing housing sales. To protect both the lenders and owners from losing money once defects of property titles occur, title insurance seems essential during the home buying process. Thus, with the bright prospect of the housing market, we may see that the title insurance premiums will continue to increase in the second half year of 2012.
“With the improvement of title insurance premiums during the second quarter of this year, we believe that we can see another high level in the following quarter of 2012,” said ARCLand Title escrow officers, “And the third quarter 2012 title insurance premiums report is expected to release in December 2012.”