Georgia Insurance Commissioner John King predicted property-casualty insurance rates will drop 3% to 5% in the next year after lawmakers approved significant tort reform measures. He also seemed to warn insurance companies about filing for major increases, according to news reports.
“So much political capital was spent on getting tort reform,” Commissioner John King told . “They better not come to our office and ask a ridiculous rate increase.”
King’s comments came three days after Georgia Gov. Brian Kemp signed into law two bills that aim to reduce what has been called excessive litigation, and seek to restrict financing of lawsuits by third-party lenders.
King also said his office is recruiting new insurance carriers and is willing to offer unnamed incentives to attract carriers to the state.
The Insurance Information Institute’s Mark Friedlander said it may take 18 months to see rates drop in Georgia, post-reform, the news site reported. Litigation cost reductions could be offset largely because a global tariff war could raise repair costs for structures and automobiles, he noted.
Topics Georgia
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