Title insurance Market Expected to Reach $161.6 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Title insurance Market, by Type (Owner's title insurance, and Lender's title insurance), Distribution Channel (Direct Channel, Agents & Brokers, and Others), and End User (Enterprise, and Personal): Global Opportunity Analysis and Industry Forecast, 2023-2032." The title insurance market was valued at $56.8 billion in 2022, and is estimated to reach $161.6 billion by 2032, growing at a CAGR of 11.3% from 2023 to 2032.

Title insurance is a policy that covers third-party claims on a property that don’t show up in the initial title search and arise after a real estate closing. Each title insurance policy is subject to specific terms, conditions and exclusions.

Furthermore, the rise in the number of real estate transactions and the increase in digital influence are boosting the growth of the global title insurance market. In addition, the rising number of aggregators and digital brokers positively impacts the growth of the title insurance market. However, a lack of awareness among customers and increasing security concerns is hampering the title insurance market growth. On the contrary, an increase in the adoption of digital solutions is expected to offer remunerative opportunities for the expansion of the title insurance market during the forecast period. 

Depending on the distribution channel, the agent & broker segment holds the largest title insurance market share, as it offers insurance policies from several insurers available in the market. However, the direct channel segment is expected to grow at the highest rate during the forecast period, owing to an increase in the adoption of direct channel title insurance services.

Region-wise, the title insurance market size was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to rise in the adoption of modern technologies in the insurance industry. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to increasing government initiatives in the insurance industry and an increasing number of mobile and internet users in developing nations such as India and China are accounted development of private and rural banking in insurance industry.

The global COVID-19 pandemic has drastically affected businesses across the world. It has positively affected the adoption of title insurance solutions due to lockdowns imposed by governments of different countries. The COVID-19 crisis continues to have a significant impact on individuals, society, businesses, and the wider economy across the globe. The insurers have responded quickly to the crisis. As the broader economy recovers and responds to the pandemic, insurers will face a number of challenges but also see many new opportunities in the medium to long term. In addition, the impact on home title insurance will vary depending on the products and types of coverage offered by the insurers. The pandemic has taken a toll on new premiums on certain lines of business, such as travel, events, and trade credit insurance, and losses from these lines of business may become significant. Other lines of business, such as automobiles and homes, have remained relatively stable.

COVID-19 accelerated title insurance, which can be considered the biggest immediate-term impact on the insurance industry as the shift away from face-to-face distribution gains momentum and self-service increasingly dominates customer interactions.

Moreover, title insurance industry has strengthened the remote access policy and procedures, making sure that the security networks are top notch, the data exchanged between the insurer and the customer is protected and high levels of security implemented across systems. This also assures the customer their data is protected and builds trust, nudging them to take on additional policy and refer others.

According to the EY organization, 75% of large commercial and reinsurance policies will be placed via a digital platform in traditional insurance marketplaces by 2030. Furthermore, better technology and richer data sets will enable underwriters to identify profitable risks more quickly and assess market demand for new products more accurately. Insights that take hours or minutes to generate are available in seconds with the help of title insurance. Moreover, automated data ingestion, third-party data streams, AI, and predictive analytics will help underwriters do their jobs better, faster, and smarter than ever before. Therefore, these factors will provide major lucrative opportunities for the title insurance market trends in the upcoming years.

Key Findings of The Study

• By type, the owner’s title insurance segment accounted for the largest title insurance market share in 2022.
• Region-wise, North America generated highest revenue in 2022.
• Depending on the end user, the enterprise segment generated the highest revenue in 2022.

The key players that operate in the title insurance market analysis are Fidelity National Title, Allianz SE, Zurich Insurance Group, China life property and Casualty Insurance Company Limited, Chicago title insurance company, Commonwealth Land Title Insurance Company, Conestoga Title Insurance Co., Westcor Land Title Insurance Company, Inc., First American Financial Corporation, and Williston Financial Group. These players have adopted various strategies to increase their market penetration and strengthen their position in the title insurance industry.