Industry News

Texas title insurers told to slash rates again

State has cut rates by 17% since 1998
Published on Jan 23, 2007

Texas regulators have ordered title insurers to reduce their rates by 3.2 percent effective Feb. 1. The order, signed by Texas Insurance Commissioner Mike Geeslin, will cut the cost of title insurance for a typical $100,000 home to $843, compared with $1,023 in 1998. Title rates are set by the Texas Department of Insurance through actuarial analysis, which takes into account expenses, profit targets and loss history. In the last eight years, Texas has cut title insurance rates by 17 percent, including a 6.5 percent reduction in 2004, the department said in a press release. California regulators are considering taking similar steps, after a study alleged a lack of competition among title insurers in the state. The study -- conducted by the former chief economist for the Texas Department of Insurance, Birny Birnbaum -- is disputed by title insurers. In one of his final acts before being sworn in as lieutenant governor, on Jan. 5 former California Insurance Commissioner John Garame...

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