Georgia Lawmakers Investigate Causes of Rising Insurance Rates

Georgia lawmakers, led by State Rep. Matt Reeves, are actively investigating the causes of rising insurance rates across the state despite the recent passage of Governor Brian Kemp's tort reform law aimed at reducing frivolous lawsuits. The reform, which limits lawsuits and jury awards, has not yet produced the expected decrease in premiums, with officials acknowledging it may take several years to see full effects. Insurance Commissioner John King highlighted insurance fraud, particularly in auto claims, as a significant factor driving up costs, while critics like attorney Jason Branch argue that population growth, inflation, natural disasters, and insurer profits also play substantial roles. Additionally, lawmakers are scrutinizing compliance with the state's mental health coverage law, suspecting some insurers may prefer paying fines rather than covering claims. The special committee plans statewide hearings, including in hurricane-affected areas, to gather input and develop solutions to make insurance more affordable for consumers. Overall, the effort reflects a bipartisan push to balance consumer protection with insurer stability amid complex economic and legal challenges.