Americans for Tax Reform's Patrick Gleason: Fast-growing states are 'pursuing tort reform' to reduce costs

Patrick Gleason, Vice President of State Affairs for Americans for Tax Reform (ATR), said, "Governors and lawmakers in fast-growing states like Georgia and South Carolina are pursuing tort reform for the same reason they’re looking to cut income tax rates. It’s a matter of cost reduction," he added in an X post on February 19.

"Governors and lawmakers in fast growing states like Georgia and South Carolina are pursuing tort reform for the same reason they're looking to cut income tax rates," said Gleason. "It's a matter of cost reduction."

According to Forbes, South Carolina is exploring tort reform as a strategy to reduce costs and attract more businesses and residents. Governor Henry McMaster and state lawmakers view this initiative as complementary to tax relief efforts aimed at enhancing the state's economic appeal. Georgia has recently enacted significant tort reform legislation, while Florida implemented reforms last year to curb lawsuit abuse, resulting in the lowest average homeowners' premium increases nationwide. Additionally, four of Florida's ten largest insurance carriers have applied for rate cuts, contrasting with 20% rate hikes faced by residents in other states.

In 2024, the Florida Office of Insurance Regulation (OIR) reported a downward trend in property insurance rate filings for the first time in years, indicating market stabilization. This improvement is attributed to legislative reforms enacted in 2022 and 2023 that enhanced consumer protections and encouraged insurer investment. Governor Ron DeSantis further reinforced these efforts by signing House Bill 1611, which introduced additional consumer protections and granted OIR greater regulatory authority.

A study released by the U.S. Chamber of Commerce Institute for Legal Reform found that U.S. tort system costs reached a record $529 billion in 2022, averaging over $4,200 per household. The study also noted that tort costs continue to grow faster than inflation, at an average annual rate of 7.1 percent between 2016 and 2022. States such as California, Georgia, Texas, and Illinois experience some of the highest per-household tort costs. In contrast, West Virginia's implementation of tort reforms has led to a more than 20% reduction in tort costs since 2016, resulting in the nation's lowest per-household cost of approximately $2,100 in 2022.

InsuranceRateReporter.com reported that a survey conducted by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics like third-party litigation funding (TPLF) and jury anchoring contribute significantly to rising insurance costs, impacting the U.S. economy by an estimated $529 billion. The survey indicates that 69% of Americans believe these practices increase insurance premiums, while 86% support legal reforms to address these issues. However, a notable portion of respondents remains unaware of these tactics; with 75% unfamiliar with jury anchoring and 70% not recognizing TPLF.

Gleason is also a senior fellow at the Beacon Center of Tennessee and regularly contributes to Forbes on topics related to state and federal policy and politics.