Gov. Brian Kemp’s plan to overhaul Georgia’s civil litigation system is set to be accompanied by a measure addressing the state’s insurance market.
Following the Georgia House’s approval of the litigation legislation (91-82) on Thursday, House Republicans introduced a resolution. This resolution proposes the creation of a special study committee to review the insurance market, a move endorsed by the Speaker of the House.
The resolution highlights rising insurance premiums, which are placing a “burden on policyholders and businesses.” It also notes that despite these rising costs, insurance companies continue to report record profits, “raising concerns about the fairness and transparency of pricing models and the industry’s accountability to policyholders.”
The study committee will comprise 11 members: seven lawmakers and four experts. Their task is to examine the “conditions, needs, issues and problems” within the insurance industry, specifically focusing on rate-setting practices, profit margins, and compliance. The goal is to ensure that “consumers are not being subjected to unjustified rate hikes.” The committee is expected to issue a report with recommendations for action or legislation.
House Speaker Jon Burns, a Republican from Newington, will appoint the committee members. He stated that he would collaborate with House Democrats to select appropriate individuals, emphasizing the selection of people based on individual merits while also considering party balance.
However, House Democratic Whip Sam Park expressed confusion about the study committee’s intentions. He questioned the need for another study, given existing efforts.
Kemp’s primary legislation, Senate Bill 68, aims to limit the types of lawsuits plaintiffs can file. Kemp has stated that the bill is necessary to protect businesses, including hospitals, from “frivolous” lawsuits which cost millions to settle.
State Rep. Stacey Evans, a Democrat from Atlanta who opposed the bill, expressed disappointment following Thursday’s vote but said she is willing to work with Republicans on the insurance market study. “I have no choice but to be hopeful,” about the insurance study committee, she said. “We do need to take a look at insurance reform, but if insurance was the issue, why didn’t we look there first? That doesn’t make any sense to me.”
