The Value of Title Insurance (India Has None and Needs the Coverage)

An analysis in India indicates that if that country were to have title insurance (they currently do not), the economic gains would be from 1 to 2 percent of GDP.  Without the access to title insurance, the buyer and lender bear all of the risk of the potential of claims on ownership, access and liens.

 

With the U.S. GDP at $14.8 trillion (the latest 2010 estimate), a 1 percent value added of title insurance is $148 billion ($296 billion at the 2 percent level)—yet the total U.S. statutory title premiums written in 2009 totaled $9.6 billion as in the 12 months ending September 30, 2010, was just $9.42 billion.  That means that the country gets an annual economic return of 15 to 30 plus times the annual cost of title insurance. 

 

 The true value of title insurance is truly vivid when viewed in an economic landscape where title insurance is not available.

 

 

Land acquisition in India risky transaction for foreign investors

Leave a Reply