What is the minimum retention of title premium required by title insurers?

The minimum retention of title premium required by title insurers is typically set at 30%. This figure is important because it ensures that title insurers maintain a sufficient level of premium revenue to cover potential losses from claims. Retention refers to the portion of the premium that the insurer keeps, as opposed to what might be disbursed or shared with reinsurers. By requiring a minimum retention of 30%, the regulation aims to provide a safeguard for the stability and financial health of title insurance companies, enabling them to efficiently manage risk and adequately support their operations.

This requirement also reflects the overall structure of the title insurance market in Florida, ensuring that insurers can deliver reliable services to homeowners and lenders while fostering a competitive and sustainable business environment. Understanding this aspect is crucial for anyone involved in real estate transactions or title insurance, as it impacts their financial and legal considerations.