I started poking around the Internet in the early 1990’s. And one of my favorite cartoons from that time was from the New Yorker. It satirized the fundamental anonymity of the internet, but it raised a serious question: Who are you dealing with?
The other day I was surfing title insurance web sites, when I happened on a consumer-focused site. Sophisticated web design, great copy writing, nice logo, a BBB logo, and even a chat widget. Now, I believe that this particular site is legitimate, but when you spend some time on the site, you begin to wonder. Here’s what I noticed:
As I was looking around, I noticed a claim that it was “a brick-and-mortar” operation. I thought great, let’s see where they are. I went looking – not a single address to be found – anywhere on the site. I even went to the sitemap – nothing. If you were proud (or even had) a brick and mortar operation, wouldn’t you let everyone know where you were located?
I thought there might be some location clues by finding out who owned the operation. The “who we are” page had some nice copy, but not a shred of evidence about who worked at the company or who or what owned the company. I noticed a link to a blog – at least I could find who’s posting. No such luck. The authors don’t use their real names. Why all the anonymity?
What about the other important things – like who’s their underwriter? Where are they licensed? Nothing on those items either, unless you count a reference to “top underwriters.” Top what, 20?
My point isn’t to pick on the site in question (though it disturbed me), but to point out that consumers shopping for title insurance have no idea if they are dealing with a quality or even a legitimate operation. If the only items required to lure consumers are a slick web design and a couple of widgets, those of questionable ethics will recognize the opportunity and will set up shop in a heartbeat (if they haven’t already).
The industry finds itself on the cusp of another black eye. For years title insurance agents have had weak and fragmented representation by their professional organizations. This has resulted in an identity crisis. We have lost the ability to define what an agent is and what one does, let alone the standard for a good agent. Unfortunately, as we are currently discovering, a fragmented environment without standards is an incubator for those with “flexible” ethics and standards to flourish.
As rotten as the current referral based system is for title agents, it protected the majority of consumers from out and out fraud. When it goes, who will guide and protect consumers? I don’t think that policing is the answer, though it feels good to talk about law, order, and enforcement. Who would be the police? Our underwriters have so far proven ineffective at protecting themselves from fraud – how could they protect consumers? The regulators, while they may have the interest, don’t have the resources required to police a wide-open, competitive environment, especially if it’s happening on the Internet.
If the referral system is going to dissolve into consumerism, how will a consumer make the intelligent choice without becoming a Title Insurance detective? We need a tool to communicate quality to a consumer. The “Good Housekeeping” seal was the baby boomer’s guide to quality, and it worked for years. Title Insurance Agents needs to develop a “seal of approval” that identifies licensed, legitimate, and reputable title agents before consumers start getting hurt. The time to start is now.
The first question: what is “good” agent? Or better yet, what sort of behavior should not be associated with a reputable agent?
3 responses so far ↓
Greg Knowles // January 29, 2008 at 12:32 pm |
I am wondering if there are really any consumers that shop for title insurance on the internet. I am yet to really see a trend in that direction. Maybe it is different in other parts of the country, but in California I’m not hearing about it. I do like the idea of creating a seal of approval of some kind.
Dave Wirsching // January 29, 2008 at 3:25 pm |
I think consumer exposure to title insurance has grown exponentially in the last year or so. Articles in major publications and the positive (and negative) pieces both online and in local publications have developed an awareness on the part of consumers.
Given the ability of the Internet to empower individual decision making, I expect consumer title insurance shopping will grow in the coming years.
Shane Kane -TitleSuccess.com // January 29, 2008 at 4:16 pm |
Consumers are absolutely shopping for title insurance online. My office receives multiple calls each day from consumers that are comparing title insurance rates.
As Dave points out , an increasing amount of consumers will be shopping for title insurance online over the next few years. There are two main reasons why this shift is developing in the market.
1. Many national lenders are now leaving the selection of the title insurance provider up to the customer, and the first place consumers turn to is the internet.
2. Consumers have been hurt over the last few years. All of the negativity surrounding the lending and title industry have them on guard. Because of this today’s consumer is more consciousness of closing costs and they know they have options.