11/24/2023 0 Comments Blueprint title insurance texas![]() Otherwise, margins would leak on either side of its operations.īlueprint, akin to Next Insurance, is a startup bet that selling insurance to business customers will prove to be a lucrative effort. Berneman said that to shrink the title insurance market through more reasonable pricing, his company needs to be full-stack, i.e., both writing its own coverage and selling it. That growth rate explains the Nashville-based company’s most recent round and what we presume was a stiff upsizing in its valuation.Īs part of its funding round announcement, Blueprint also disclosed that it has purchased Southwest Land Title Insurance Company, an underwriting company. That appears to be the case, with the startup stating in a release that it anticipates 400% revenue growth in 2021 when compared to 2020. Our call with Blueprint was the first in which a startup discussed shrinking its market.īut the point is reasonable if title insurance is mispriced, and Blueprint sells to corporate customers, it can likely offer profitable coverage at a lower-than-market price point - and grow quickly in the process. The result of market concentration and effective price harmonization is that Berneman thinks that the $18 billion title insurance business should really be a $10 billion market. And thanks to rules requiring public pricing in many states, there’s alignment on pricing from some leading players. That means its risk profile is different, and its pricing less flexible there’s less loss ratio to wring out of title insurance underwriting, so cost and delivery of service are even more important than in other insurance varietals.Īccording to the CEO, the title insurance market in the United States today is made up of four companies with around 90% market share. Title insurance, Berneman said, has around a 1% to 4% claims rate, far lower than auto insurance, to pick an example. Insurtech is hot on both sides of the Atlantic That means that the company’s go-to-market activities are distinct from its mates in the consumer-focused cohort and that its loss profile is very different. That means its customer base is not made up of consumers hoping to cover their main residence, Blueprint CEO Steve Berneman told TechCrunch in an interview. Blueprint, in contrast, sells to professional groups looking for a better title insurance experience. The neoinsurance companies that went public in the last year and a half sell to consumers. Blueprint is different from the Roots and MetroMiles and Hippos that debuted via traditional IPOs or SPACs it largely sells to business customers and has a very different product on offer. While Blueprint is an insurtech startup and therefore fits into the neoinsurance cohort that we’ve tracked in recent quarters as a number of companies from the group have gone public, it’s somewhat distinct. The startup previously raised an $8.5 million Series A in the final weeks of 2019. Blueprint Title, an insurtech startup working in the title insurance space, announced this morning that it closed a $16 million Series B.
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