Demotech Joined the Coalition Against Insurance Fraud — You Should Consider Doing So.

Decades prior to our groundbreaking research project in the spring of 2022 leading to the unearthing of the previously covert online business model of tech-enabled litigation instigation, in 1993, Demotech was the first to review and rate title underwriters. The purchase of a house and related real property are often the largest expenditure and most significant asset that a consumer purchases. Title insurance protects the marketability of that title to real property, and, in many ways, helped prevent the original form of identity theft.

Over the more than 30 years since we initiated ratings of title underwriters, lenders and title agencies became early adopters of wire transfers and online documentation. In response, Demotech protected those purchasing real property by requesting, evaluating, and opining on the procedures, processes, and protocols that title underwriters had in place to minimize the likelihood of escrow theft or the online misdirection of funds.

Over time we published the anonymized results of our surveys to assist the title insurance industry to develop best practices to protect owner and lender transactions from fraud. Today, Demotech reviews and rates title underwriters protecting nearly 100 percent of the real property in the U.S.

As our more recent research project, which unearthed the previously covert online business model of tech-enabled litigation instigation, reminded us, the cost of an opportunistic claim is the same as the cost of a fraudulent claim. We joined the Coalition to provide consumers and regulators with another set of corporate eyes focused on identifying and eradicating abuse of insurance.