First American Financial Corp. has launched a shared blockchain system designed to increase efficiency, reduce risk and improve the title production process.
The system is intended to facilitate the exchange of prior title insurance policies between underwriters that contribute to the system, the company says in a release.
Old Republic Title Insurance Group, the nation’s third largest title insurance underwriter, has committed to be the first to participate.
Each policy included in the blockchain system will be coded with a unique identifier by property, streamlining the search process and increasing the accuracy of searches for prior title insurance policies.
“First American has a long history of innovation and our development of this system demonstrates our ongoing commitment to applying state-of-the-art technologies that reduce risk and improve the real estate transaction process,” says Dennis J. Gilmore, CEO for First American Financial Corp. “The potential exists to create a robust exchange of title insurance policy information that delivers greater transparency, efficiency and accountability to the industry and enhances the closing experience for consumers.”
The common practice of sharing policy information among title insurance underwriters can be beneficial to underwriters and consumers alike, as it both increases efficiency and reduces risk.
This blockchain system melds that established practice with emerging technology to further increase efficiency and lower risk in the title production process, the company says.