Intense price competition and increasing customer demands for speed, reliability, and bundled services are the driving forces changing the face of the incredibly competitive title insurance industry.

Technology and innovation are driving change in the settlement services industry and the title industry is no exception. Each day presents challenges to owners and managers of title insurance firms as shrinking margins, aggressive competitors, saturated markets and the dynamics of the Internet come into focus. Customers are demanding speed: speed in the delivery of products and services; speed in response to problems; and speed in closing transactions. Fannie Mae and Freddie Mac have announced pro-consumer objectives which will result in the reduction of the time needed to close simple residential transactions by one month and by the reduction of closing costs to the consumer by one thousand dollars. This lender pressure to reduce the cost and increase the speed of the closing process is expected to drive the industry to further innovations in technology, operating efficiencies, and the perception and assumption of risk.

• Speed: Electronic interfaces to facilitate electronic commerce among settlement service providers and financial institutions are critical to a title company's survival. Evaluations by many title companies are taking place to be certain that company operations are "Internet ready" with the expectation that the Web will take on an increasingly critical role in the industry.
• Prices: The downward movement in prices for all settlement services, including title insurance, creates the need to promote strategies to gain operating efficiencies and to seek other sources of revenue. Eliminating unnecessary expenses and other cost improvements will enhance financial performance in order to maintain operating margins that will allow for growth and for reinvestment into the company. Some title industry players, as a means to stabilize prices, have suggested rate regulation. To date, a consensus to go in this direction has not been reached.
• Ancillary Services: Tax services, credit reporting services, property valuations, flood compliance products, REO services, property data services and default management services are becoming key ingredients to the successful marketing of title insurance to large national customers. Title and non-title related operations linked electronically provide a tempting menu for institutions looking for convenience in a single source for bundled services. Non-title services are also helping to add to the bottom line of title insurers.
• Customer Service: Customer feedback has proven to be critical to the success of any business, especially a fast moving one such as the title business. Organizations must find ways to place employees in constant contact with customers to diagnose and improve performance. The old approach to customers doesn't work anymore. Customers expect responsiveness and consistency whenever they deal with a title company. The customer will define value and the industry must learn to provide it.
• Risk: The task of performing faster at lower cost without sacrificing quality is a very difficult one. Risk analysis procedures in the title industry are being reevaluated as the perception of risk to title insurers is being called into question. Those who feel the need to compromise the quality of title services in a tradeoff for higher risk are treading water in what will turn out to be tumultuous seas. Generally, title insurers are very good at keeping their skeletons in the closet when it comes to major claims instead of educating customers as to what can go wrong and how much it can cost. Only when customers have an understanding of the losses of title companies will they appreciate the protections that are being afforded.

Constant change in the title insurance industry is inevitable. Successful management of change involves a flexible approach to the continual challenges that are faced on a daily basis. A dramatic shift of power by way of the consolidation of settlement service providers is underway. To effectively face an evolving market, there is a need to constantly scout the competitive landscape looking out for trends and developments that have the potential to change business practices. Companies will need courage, vision and objectivity to be a viable part of the future. Opportunities will be lost if old ways of doing business are continued for too long. Taking sound strategic actions are essential if a title company is to become aligned with the new order that is changing the face of the industry.

About Greater Illinois Title
Greater Illinois Title, celebrating its 22nd Anniversary in 2007, is Chicago Title's largest title agent in Illinois and one of its largest title agents in the country. The company provides title insurance, construction and commercial escrow services, sale and refinance closing services, 1031 tax deferred exchanges, land surveys and real estate information in the Chicago metro region. It currently operates through a network of nineteen offices located in Arlington Heights, Crystal Lake, Downers Grove, Geneva, Homewood, Joliet, Libertyville, Lindenhurst, Naperville, Oak Lawn, Oak Park, Shorewood, Tinley Park, Waukegan, Westchester, Wheaton, Yorkville, in Chicago on North Milwaukee Avenue and in the Loop at 120 N. La Salle Street. Greater Illinois Title is authorized to write Title Insurance and issue policies in the Counties of Cook, DeKalb, Du Page, Grundy, Lake, Kane, Kankakee, Kendall, Lake, LaSalle, McHenry and Will. The company coordinates title insurance and escrows in all Illinois Counties and across the United States.