A tort reform package currently advancing in the Georgia General Assembly is being highlighted as crucial to addressing the impacts of legal system abuse on insurance costs for both consumers and businesses in Georgia. This is according to a report titled "Trends and Insights: Georgia Insurance Affordability" published by the Insurance Information Institute (Triple-I).
The Insurance Research Council (IRC) has noted that Georgia, with below-average income levels and above-average insurance expenditures, ranks among the least affordable states for personal auto insurance. Analysts suggest that insurance rates could significantly influence homeownership affordability in the state over the coming years.
From 2014 to 2022, Georgians' spending on personal auto insurance increased by 5.6% annually, compared to a 3.3% increase across the U.S., making it one of the fastest-rising states in this regard. By 2022, average personal auto expenditures in Georgia were $1,347, about 20% higher than the national average. This disparity contributes to Georgia's ranking as the 47th least affordable state for personal auto insurance.
Sean Kevelighan, CEO of Triple-I, emphasized that "there must be more work done to curb legal system abuse in Georgia," noting that billboard attorneys have significantly increased claims costs. He believes understanding these trends can lead to positive economic outcomes through legislative reforms like those proposed by Governor Brian Kemp.
In an effort to raise awareness about legal system abuse's impact on insurance costs, Triple-I has initiated a campaign across Metro Atlanta featuring billboards and digital displays alongside a consumer-focused website.
The rising cost of homeownership is also addressed in Triple-I's report, which notes that while home prices have nearly doubled nationwide over the past decade, increasing insurance rates could hinder home affordability further. In terms of homeowners insurance affordability in 2021, Georgia ranked as the 42nd least affordable state.
Severe weather events have also contributed significantly to rising costs. Between 2019 and 2023, Georgia experienced 38 weather disaster events with losses exceeding $1 billion each time. Dale Porfilio from Triple-I highlighted that these losses often stemmed from severe storms and tornadoes and were exacerbated by post-disaster inflationary pressures.
Triple-I serves as a major source of information on insurance-related issues without lobbying or selling insurance products itself. Similarly, IRC provides research relevant to public policy issues affecting insurers and their customers but does not engage in advocacy or lobbying activities.