When the title insurance industry began to embrace outsourcing in the late 1990’s, the industry was experiencing boom times – low interest rates, high volume of refinance transactions, rising real estate prices nationwide and minimal claims.

With few claims and almost uniform low-risk transactions like refinances, the price of outsourcing services became a deciding factor.

Some thought leaders wondered if a “casualty” based risk model like fire or car insurance might work well for the title insurance industry – replacing the industry’s traditional claims-avoidance model. In the casualty model, a certain amount of loss is considered acceptable if the losses are paid for by reduced costs. In the claims-avoidance model, accuracy of completed work becomes more important to prevent claims.

The cycle has changed. Interest rates are rising, and refinance transactions have plummeted.

Real estate prices are high. The industry should expect higher claims from low-cost, variable- quality title production. We predict the flirtation with the casualty insurance model will fade … the title industry will likely return to its traditional claims-avoidance model.

In a high claims industry like title insurance, outsourcing should be a strategic corporate decision, not a price driven race to the bottom. Prioritizing price can lead to disastrous consequences.

Quality Compromises:

• Errors and Delays: Low-cost providers often cut corners on quality control, leading to errors, delays, and ultimately, higher long-term costs.
• Reputation Damage: Poor quality can damage your brand reputation and erode customer trust.
• Increased Claims: Lower quality results in increased claims.
• Internal Rework: Lower quality from an outsourced supplier requires more internal qc and rework – with the attendant staff stress and lack of confidence in the delivered products.
• Irreversible Damage: Poor quality title plant indexing soils the plant forever, making it a questionable source of title evidence.

Instead of Focusing on Price, Consider These Factors:

• Expertise and Experience: Look for providers with proven expertise in the title industry.
• Communication and Collaboration: Choose companies who are responsive, communicative, and collaborative.
• Project Management Capabilities: Insist on strong project management, essential in a provider for outsourcing to be successful.
• Cultural Fit: Ensure the provider’s values and work ethic align with your company culture.
• Long-term Relationship: Focus on building a long-term relationship with a reliable and trustworthy partner.

Look to HDEP International, the pioneer in outsourcing for the title insurance industry:

HDEP International pioneered outsourcing for the title insurance industry in 1988. HDEP is the only outsourcing company that is an ALTA Elite Provider, with facilities that are ISO 27001 security certified.

Here’s what makes HDEP International your ideal partner:

• Unparalleled Expertise: Our team includes highly trained U.S.-based title professionals, including real estate attorneys and chief title officers, who oversee your projects.
• Proven Stability: With one of the lowest turnover rates in the industry, our staff stays for decades—ensuring consistency and reliability.
• Commitment to Quality: We deliver accurate, timely results that reduce claims and internal rework, protecting your reputation and bottom line.
• Customer-Centric Approach: Our long-term clients trust us because we deliver value, not just transactions.

If you’ve had the experience of working with an outsourcing provider, but have been unhappy with the results, consider the company often referred to as the “gold standard” in title insurance outsourcing: HDEP International.