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Insurance Information Institute: Legal abuse is 'raising everyone's insurance costs' in Georgia

Policy Reform

B. B. Urness / 22 days ago

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Insurance Information Institute CEO Sean Kevelighan | YouTube

Sean Kevelighan, CEO of the Insurance Information Institute, said legal abuse from big trial lawyers is "raising everyone's insurance costs" and harming consumers.

"Consumers like you are getting less and the big trial attorneys are getting more." Kevelighan said. "They're exploiting audiences, promising riches, when in fact it's just raising everyone's insurance costs. And that's why we're hoping to see more legal reform in a state like Georgia."

Legal system abuse adds $13 billion annually in litigation-related expenses to Georgia’s economy—a burden felt by policyholders, businesses, and insurers alike.

These expenses, many argue, create unsustainable pressure on insurance providers who are left with limited options, often resorting to premium increases or reducing coverage in the state. Kevelighan warned that this trend, if unchecked, could disincentivize insurers from operating in Georgia altogether, potentially leaving residents with fewer and more costly insurance options.

“Insurance is very core to a functioning economy, and if it gets to the point where our insurance companies do not want to be in the state, then we get into a very bad situation economically for everyone,” said Rob Townley, president of Townley Kenton. 

A 2022 report from the U.S. Chamber of Commerce Institute for Legal Reform detailed that these costs include $229 billion in general and commercial liabilities, $196.5 billion in automobile accident claims, and $17.5 billion in medical liability claims, reflecting a consistent increase over recent years.

A Triple-I report indicates that insurance abuse costs each Georgian $1,372 annually, leads to over 137,000 job losses every year.

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