Insurance demands for change in Georgia under a new invoice as fees increase

Georgia is prepared for significant changes in its legal landscape as Governor Brian Kemp Enter a comprehensive grievance reform package aimed at approaching insurance costs. However, critics argue that these reforms will mainly benefit insurance companies and believe that changes could limit people’s ability to seek fair compensation.

Why does it matter

Georgia, like many states, is dealing with increasing insurance premiums. For example, Auto insurance rates In the state it increased by 21 percent last year, according to a Insurify report. This exceeds the national average by 22 percent. The insurance rates of housing owners have also seen a strong increase due to factors such as the increase in repair costs and a greater frequency of claims.

The reforms proposed by Governor Kemp are aimed at mitigating these growing costs by reviewing the State’s civil liability laws, potentially influencing companies and how consumers seek repair through the legal system. However, some experts argue that these reforms could disproportionately benefit insurance companies on consumers.

What to know

In a press release on January 30, Kemp announced his “plan to address the agravice reform and stabilize insurance costs for working georgians.” This package aims to limit business responsibility to what they can directly control, limit damage to real medical expenses and prohibit anchor tactics in closing arguments.

In addition, the reforms include bifurcated essays to establish responsibility before evaluating the damage, restricting the plaintiffs to dismiss and squat the cases in the middle of the trial and bring transparency and restrictions on the financing of third -party litigation.

The grievance reform package includes key proposals aimed at improving the state’s dispute environment, which include:

Reassessing business responsibility: This aims to limit the responsibility of companies for crimes committed in their property by third parties. Companies would only be responsible for incidents that could reasonably control, such as adequate lighting and security measures.

Limit compensation to real medical expenses: This proposal seeks to limit the damages granted in the demands to the actual medical expenses incurred by the plaintiffs. This means that the plaintiffs can only seek damage to the amount they have paid directly or will pay in the future for medical treatment.

The supporters of the reform argue that these changes are necessary to stop the frivolous demands and excessive jury awards, who believe they contribute to higher insurance premiums. They argue that a more balanced legal environment will make Georgia more attractive to companies and help stabilize insurance costs for consumers.

Kemp emphasized the urgency of these reforms, stating: “Our legal environment is depleting family bank accounts and harming employment creators of all sizes in almost all industries in our state.” He added that the grievance package aims to protect the rights of all Georgians, ensuring access to the civil justice system and fair compensation for those who have been harmed.

The opponents warn that the proposed reforms could limit people’s ability to seek fair compensation for legitimate complaints. In an email -sent response NewsweekJason Branch, president of the Georgia Lip Association Association, argues that proposed aggravious reform measures will not reduce insurance premiums, but will increase the profits of insurance companies, which makes it difficult for injured georgians to obtain justice.

Branch emphasizes that insurance premiums are established by insurance companies, which have been raised while registering record profits. He points out that the insurance industry obtained around $ 90 billion in profits in 2023, and 2024 was the most profitable year in modern history for insurance companies. “The proposed laws of refusal reform that are now offered will only serve to further enrich state insurance companies.”

What people say

Governor Brian Kemp declared in a Press release: “After months of listening to our citizens, companies and interested parties throughout the spectrum, it is clear that the status quo is unacceptable, unsustainable and endangers the prosperity of our state in the coming years. This grievance reform package protects The rights of all Georgians to have access to our civil justice system and ensures that those who have been harmed receive justice and do everything. “

Jason Branch, president of the Georgia Litonal Lawyers Association, declared in a response sent by email to Newsweek: “The most disturbing thing is that insurance companies will benefit at the expense of innocent georgians who have suffered injuries and damage due to the unfair behavior of others. Although the approval of any of these aggravious reform proposals will not decrease the insurance premiums , it is guaranteed that these laws limit the legal and constitutional rights of each individual citizen in the State.

The changes proposed in the law are of great scope and of great scope and, in their essence, they seek to limit the responsibility of the offenders in the State and limit the right of all innocent georgians to justice. They do it by changing existing laws and inclining them in favor of the accused; Alter laws and legal directors that have existed for more than a hundred years; Fundamentally change how civil judgments are performed and limit what a jury can consider when deciding a case and more. “

Garrison Douglas, spokesman Brian Kemp, said Newsweek: “We welcome you to read the bills. The governor was very clear during his speech that Georgians who are harmed should have all the opportunities to pursue their constitutional guarantee day in the Court and be complete. This comprehensive and common package Protect that right, while prohibiting hostile foreign powers from taking advantage raise a family. “

What happens later

The proposed grievance reform package will be deliberate in the General Assembly of Georgia during the current legislative session. As the debate develops, the interested parties of several sectors, including commercial associations, consumer rights groups and legal professionals, will evaluate the potential impacts of the reforms. The result of these discussions will determine the future of Georgia’s legal panorama and its approach to manage insurance costs.