Georgia Republicans push to limit lawsuits. But would that keep insurance rates from rising?

MT HANNACH
7 Min Read
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Atlanta (AP) – The field of the Governor of Georgia Brian Kemp is simple: putting limits to prosecution Hautera increases insurance costs.

Reality, however, is more complicated.

Changes could reduce civil liability insurance costs for companies and owners of commercial properties. The evidence is mixed to find out if it would lead to a large reduction in bonuses for the car and other types of insurance. And some researchers say that efforts limiting prosecution, often called reform of the offense, expand the benefits of insurers more than what reduces the price of policies.

“The net impact is that it really improves the profitability of insurers,” said Tyler Leverty, a business professor who studies risks and insurance at the University of Wisconsin-Madison.

When Kemp unveils his proposals on Thursday, the Republican Governor is likely to continue to rely on his argument that everyone’s insurance rates increase because unjust prosecution is increasing and juries grant excessive damages.

The problem is Kemp’s absolute priority This year after promising the Chamber of Commerce of Georgia, he would do it act And rather pushed a law so that the Georgia for Insurance Commissioner John King collects data in 2024.

King said prosecution stimulate insurance companies to reduce the coverage of retail companies, apartments, drivers and others. He said that business owners in areas that insurers qualify high crime are among those who have the most difficulties. Companies that offer low -income housing have also complained.

“Go down to the south-east of Atlanta and talk to the small convenience owners to be close because they cannot find insurance,” said King.

Are unjust proceedings and the big jurys real real problems?

Some say that there is no evidence that a nationwide litigation crisis stimulates high insurance rates.

“I went in search of the data and I did not find it,” Kenneth Klein, a law professor at California Western School of Law, said. “This does not mean that it does not happen. This means that we cannot document it. »»

But Mike Iverson of Oakbridge Insurance and former President of the Independent Insurance Association Agents said that insurance companies and predictability when determining the rates and how to distribute the losses.

In a well -known case, a jury awarded a man nearly $ 43 million after a shooting in a CVS parking lot in Atlanta, arguing that the company should have strengthened security. In another case, a park of mobile houses from Jonesboro was ordered to pay $ 31 million to the daughter of a man who was shot there.

Opponents note that few verdicts are that large insurance companies are always profitable. They want legislators to require more transparency on how they set rates.

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