What We’ve Got Here is a Failure to Communicate
How Traditional Financial Reporting Contributes to Misunderstanding of Title Insurance Loss Activity
By Joseph L. Petrelli, ACAS, MAAA, FCA
This article focuses on a specific financial reporting practice that has contributed to the Title insurance industry‘s failure to communicate the unique characteristics associated with its loss containment activities. The author believes that communication can be enhanced if both parties, the Title industry and its regulators, address and acknowledge the impact of the rote application of certain financial reporting requirements and how Title underwriters do not fit the mold established for P&C companies.