Insurance trade groups praise enacted Georgia tort reform, urge other states to follow suit

By Michael Loney

April 22 - (The Insurer) – Insurance trade groups have welcomed the signing of legal reform in Georgia and suggested it will help rein in abusive practices that artificially drive up insurance claims costs.

Georgia Governor Brian Kemp on Monday signed both parts of the state's tort reform, SB 68 and SB 69.

The legislation bans "anchoring," curtailing foreign adversaries from investing in litigation and drawing stricter parameters around the language plaintiffs can use to argue noneconomic damages in an effort to stabilize insurance costs in the state.

Caitlin Murray, senior regional vice president, southeast, at the National Association of Mutual Insurance Companies, said Georgia’s “historic step forward to rein in legal system abuse will benefit both insurers and policyholders by containing runaway litigation costs."

NAMIC said the comprehensive legal reform will create a fairer litigation environment in the Peach State.

“As cost pressures including extreme weather, inflation, and regulatory overreach push insurance rates up nationally, confronting legal system abuse can bring relief to consumers,” Murray said.

She praised Governor Kemp and the Georgia legislature for putting fair and effective solutions into place to strengthen the state’s insurance marketplace and increase competition.

“As other states wrestle with their unique challenges, those struggling with legal system abuse and seeking concrete ways to limit insurance costs should follow in Georgia’s footsteps,” she said.

The American Property Casualty Insurance Association also applauded the signing of SB 68 and SB 69.

“Over time, the legal reforms can help rein in abusive practices that artificially drive up claims costs Georgia and have a direct impact on the pocketbooks of Georgians,” said Ron Jackson, vice president of state government relations at APCIA.

“In our neighboring state of Florida, recent legal system abuse reforms are having a positive impact as the state’s litigation environment improves and insurance rates stabilize. We are hopeful the same positive effects will be experienced in Georgia,” he added.

APCIA’s biggest priority is advancing legal system abuse reforms across the U.S.

Jackson said the success in Georgia will help generate more positive momentum as other states look to address legal system abuse to help improve insurance affordability and availability.

Insurers, trade groups and the defense bar have long seen Georgia as hostile to businesses, with the state coming in fourth place on the "judicial hell-hole" 2024 list assembled by the American Tort Reform Foundation.