Overview.
A new company seeks to revolutionize the way home title insurance is marketed and sold
Every lender requires that title insurance be purchased before lending money to buy or refinance a home. Historically, title insurance is provided by one of two carriers, and in most states is sold through agents. Real estate attorneys are often the selling agents, and recommend to their clients both the carrier (whom they represent) and policies (usually both lender and owner policies, which are not always needed). For their work, agents collect a substantial commission, amounting to 70%–90% of the total premium.
Potential.
Educate consumers that they can buy the title insurance they need for significantly less by purchasing online, direct from a reputable carrier
While the cost of title insurance is high relative to the work required to write the policy and cover the low incidence of claims, consumers typically pay little attention. They often don’t learn of the cost until the closing, and the total amount is insignificant when compared to the cost of purchasing or refinancing the home. Entitle Direct determined that as a carrier and online direct marketer they could provide title insurance for 35% less than what consumers would typically pay, and be very profitable. To succeed, Entitle Direct would have to create consumer awareness in a low interest category, and change consumer behavior by persuading them to become proactive in their purchase of title insurance.
Realized.
Entitle Direct has begun to build awareness among consumers that they can save money on title insurance, and are writing an increasing number of policies
Trinity research revealed that when consumers learned 70%–90% of the cost of their title insurance premium was commission for the agent, they were more likely to purchase direct. Entitle Direct began selling title insurance online in 2009, and marketed to potential home buyers and refinancers, as well as to "influencer" professionals involved in the home buying process (excluding real estate attorneys that were also title insurance agents). Entitle Direct is meeting its growth goals, and is leading a fundamental change in the way title insurance is purchased in the United States.
Work.
Market Intelligence; Marketing Strategy and Planning
Initial qualitative research revealed that consumers were confused about what title insurance covered, shocked when they learned that commissions accounted for 70%^–90% of their substantial title insurance premium, and angry when they discovered that their attorney was collecting the commission. Extensive quantitative research was used to test the relative appeal of product concepts and pricing, forecast demand, and identify the target audiences most likely to purchase. Our work enabled the development of sales (revenue and units) and profit forecasts which were critical to Entitle Direct’s securing venture funding. Finally, Trinity helped the company position and market itself to venture capital groups and other key stakeholders.