Data Analysis Report: May 2021
Table of Contents
Summary
Data Analysis financial results for the first six months of this year are stronger than ever. In every category, we have seen improvement over the same period last year. Created premium, an indicator of market activity is up 24% from last year. Average premium is up 12.5%, indicating a hardening market over the previous year.
Stamping fees are up 41% over last year. The growth in transactions, combined with a growth in average premium and the stamping fee increase drove this result. The average stamping fees are up 28.5% compared the created premium growth of 24.2%. This is due to the substantial influence of the pre-2020 stamping fee in the previous year. As of May 2020, the 0.20% stamping fee comprised 63.5% of all stamping fees, whereas the pre-2020 stamping fees represent 6% of FY2021.
Transactions are also up nearly 12% over last year. As mentioned above, a rise in transactions magnifies other factors that are also climbing in the market. While transactions are increasing, unfortunately so are tags. We have increased 13% over last year. The primary driver is late filings, which may be attributed somewhat to the challenges of the pandemic. Excluding late filings, tags for other issues are down 2% from last year.
Finally, our shift in focus to an error-free rate (EFR) as a measure of quality is making a significant difference in our overall results. When we rolled out an EFR for measuring quality, we were fully performing at 75%. Since it has become our focus as a team, our results have improved to 80% and climbing. Our goal is to reach an EFR of 90% during this year. Production has dropped slightly, which is due to several new enhancements we added to our processing. Over the past year, we enhanced our efforts in gathering NAICS data, and recently we added TIV limits to our data collection. These actions add time to our average hourly processing; however, we believe the information we are collecting will pay far bigger dividends in our reporting going forward.
The tables below provide greater detail of our results.
Fiscal Year Comparison – Financial
| Dimension | FYTD May 2021 | FYTD May 2020 | Difference | % Change |
| Created Premium | $5,776,385,320 | $4,650,418,208 | $1,125,967,112 | 24.2% |
| Registered Premium | $5,684,963,440 | $4,604,046,163 | $1,080,917,277 | 23.5% |
| Average Premium | $14,703 | $13,071 | $1,632 | 12.5% |
| Stamping Fees | $14,002,615 | $9,931,214 | $4,071,401 | 41.0% |
| Average Stamping Fee | $36.20 | $28.18 | $8.02 | 28.5% |
| Top 10 Broker Premium | $3,345,695,262 | $2,631,957,979 | $713,737,283 | 27.1% |
| Top 10% Contribution | 58.9% | 57.2% | 1.7% | 3.0% |
Fiscal Year Comparison – Operations
| Dimension | FYTD May 2021 | FYTD May 2020 | Difference | % Change |
| Created Transactions | 402,350 | 359,515 | 42,835 | 11.9% |
| Registered Transactions | 388,776 | 350,482 | 38,294 | 10.9% |
| Tags Assigned | 158,823 | 140,098 | 18,725 | 13.4% |
| Late Filing Tags | 121,189 | 103,892 | 17,297 | 16.6% |
| Tags / Transaction | .46 | .40 | .06 | 15.0% |
| Error Free Rate | 75.0% | 80.0% | 5.0% | 6.7% |
| Hourly Production | 9.82 | 9.90 | (0.7) | (0.7%) |
Project Update
This year, DA has taken on two key initiatives worth mentioning. Our first initiative is to re-engineer our current coverage code system. Working closely with Compliance and Education, we recognize that our current 3-digit system could be better organized and more user-friendly for our member brokers. We are building a model that more closely aligns with other Associations and Stamping offices by structuring our numbering system from three- to four-digits and organizing our codes into broader coverage types. We are currently working with IT to scope the project and build timelines. Barring any internal and external constraints, our transition target date is set toward the end of 2021.
Our second initiative is designed to improve DA communication with tag assignment. Currently, our tag identification and communication systems are cumbersome and confusing for our broker community. Further, the current tagging identifiers exacerbate our ability to aggregate data to build quality improvement efforts for both broker and analyst. This project is also in planning stages with IT. We plan to identify a rollout date within the next few weeks.