Lower profitability and longer transaction timeframes were the key findings in the 2007 CATIC Attorney Business Index
Parsippany, NJ, May 21, 2007 – Strativity Group today announced the release of the second CATIC-sponsored Attorney Business Index (ABI) study. 341 attorneys from Connecticut, Massachusetts, Vermont, and Rhode Island participated in the study which includes key indicators such as average legal fee, profitability level, sources of business, and number of quarterly transactions.
CATIC Attorney Business Index highlights include:
- Pricing – Nearly 26% of attorneys increased fees by at least 5%
- Profitability – Only 21% of respondents claimed to be profitable on every transaction
- Business performance – Less than 20% of attorneys conduct more than 50 transactions each quarter
- Sources of business – Existing clients remain the most effective source of new business with more than 30% of attorneys reporting that at least 50% of revenue comes from existing customers
- Outsourcing rate – 86.5% of attorneys outsource some type of service
Commenting on the study, Rich Patterson, CEO of CATIC said, “As part of CATIC’s commitment to attorney success, we are pleased to deliver the second CATIC Attorney Business Index. The results of this study should guide attorneys in their business decisions and provide them with invaluable insight into market trends, enabling them to improve and grow their business.”
One of the most significant findings in the study is that the level of real estate business remains largely consistent even during the current housing slump where home prices have dropped, inventory has increased and sales cycles have lengthened. The report reveals that there has been no material change in the number of real estate transactions conducted by attorneys during the previous six months; and that the percentage of attorneys raising their fees remains steady at roughly one quarter of the market. Another interesting finding is a repeat theme from the 2006 ABI which found that only a small minority of attorneys conduct only profitable transactions.
The CATIC ABI follows the complete business relationship cycle from business generation through pricing, transaction performance, profitability and relationship quality. Each aspect of the process is examined and includes critical benchmark data. The study also segments the results by firm size and state to provide more relevant information to attorneys regarding the most effective method of designing and delivering valuable and profitable services. For an executive summary of the study, please visit www.CaticAccess.com. The full report is available to survey participants. The next ABI survey will commence in mid 2008.
About Strativity Group
Strativity Group, Inc. is a global research and consulting firm advising organizations on creating lasting, profitable relationships with their customers and employees through the transformation of their strategies and execution to revolve around the customer experience.
Strativity Group, Inc. works with both Global 2000 companies as well as emerging businesses around the world. Our clients include Nokia, Computer Associates, SAP, American Management Association, Seagate Technology, Honeywell, Siemens, Dimension Data, FedEx, CATIC, Circle K, University of Pennsylvania, Capital One, Jacada, Wyeth, Sage, Herbalife, Akibia, National, Lockheed Martin and Crown Plaza Hotels & Resorts and Nordea.
CATIC is New England’s largest domestic and only Bar-Related® title insurance underwriter.
The Company has been in business for forty years. The Company has seven offices throughout New England and issues its policies through a network of more than 2,800 attorney agents. CATIC is currently licensed in Connecticut, Massachusetts, Rhode Island, Vermont, Maine, New Hampshire and New Jersey.
The Company is an underwriting member of the American Land Title Association (ALTA), the New England Land Title Association (NELTA) and the North American Bar-Related® Title Insurers. The Company offers standard ALTA policies, as well as expanded protection policies, for both residential and commercial properties. We annually insure mortgages issued by more than 1300 lending institutions. The Company has received an “A-” rating (Single-A-Minus) from Fitch, Inc. (formerly Duff and Phelps Credit Rating Company) and an A’ from Demotech.
CATIC is dedicated to providing high-quality professional services to its policy-issuing attorneys, its insured lenders and home-buyers, and other members of the real estate community.