ATLANTA (Legal Newsline) – Tort reform may finally be prioritized in Georgia Republican Gov. Brian Kemp's legislative agenda next year.
On Nov. 1, the state's insurance department is expected to release data collected from insurers, insurance rating organizations and state agencies that could form the basis for civil justice reforms that advocates have long sought.
In the soon to be released report from the Office of Insurance and Safety Fire Commissioner, auto insurance information will be a main topic, a spokesperson for the office said.
And that could be added fodder for reform advocates in Georgia – a state ranked among the most expensive for auto insurance consumers.
Georgians on average pay 15% more than the U.S. average, according to insurance analyst Insurify. As of June 2024, the average full coverage rate was $2,688, a figure 21% higher than in June 2023. By the end of the year, average full coverage premiums will cost $2,893, for an increase of 24% this year.
Georgia is rated the 10th most expensive state for auto insurance, according to Insurify.
"Tort reform has been a goal of Georgia Republicans and their allies in the business community for decades," wrote Dave Williams for Capitol Beat News Service on Aug. 9.
Williams noted that pro-business governor Kemp put tort reform on ice at the beginning of the year, saying significant reform packages required more work and study. Kemp then opted for gathering data on legal trends affecting premiums to be revealed in the upcoming "Data Analysis for Tort Reform Act" that legislators passed in April.
Certain data points in the report could help amplify the narrative of reformers who say that excessive or frivolous litigation increases costs of insurance operations which are then passed on to ratepayers.
The American Tort Reform Association is among critics of Georgia's legal climate, arguing in December 2023 that the state is tied for the worst "judicial hellhole" in the country.
“Lawsuit abuse wipes out billions of dollars in economic activity annually in Georgia and threatens the state’s business-friendly reputation,” ATRA's president Tiger Joyce said of the Peach State, pointing to “'nuclear' (excessive) verdicts, expanded premises liability, and questionable decisions by the Georgia Supreme Court."
An article in Insurance Business Magazine also identified frequency of claims litigation as a driver of increasing costs of auto insurance.
The author cited a report from the Insurance Research Council, which stated that the affordability of auto insurance has declined in Georgia over the past decade and a half.
"Affordability challenges in Georgia’s auto insurance market are linked to several factors, including economic inflation, high replacement costs, poor driving behavior, and legal system abuse," the Insurance Business Magazine report states.
Since Kemp punted on reform earlier this year, he has held three civil litigation roundtable events in 2024, the last of which was Oct. 9 in Atlanta, where he touted the state's pro-business climate as "No. 1" for the past 11 years.
“The unfortunate reality is our current litigation climate has led to increased costs for consumers and a higher barrier to entry for those who want to create jobs in our state," Kemp said. "As we prepare to address this issue, these listening sessions have allowed us to hear from a diverse group of stakeholders who have shared thoughtful input that will inform our next steps.”
The first day of the 2025 Georgia legislative session is Monday, Jan. 13, 2025.