Georgia lawmakers push insurance reform bills to lower rates and expand accountability

Georgia lawmakers are advancing a new round of insurance reform bills aimed at lowering rates and strengthening accountability for insurers, building on last year’s tort reform package.

Members of the House Blue-Ribbon Study Committee traveled across the state to gather input from industry leaders, consumer advocates and policy experts before introducing legislation this session. According to Atlanta News First, the effort centers on the Georgia Insurance Affordability and Claims Integrity Act, known as House Bill 1344.

The proposal is one of four measures discussed at the State Capitol that supporters hope will reach the governor’s desk. It would increase fines under Georgia’s insurance code, require more timely claims processing after storms and expand oversight by strengthening the insurance commissioner’s enforcement authority.

“My hope is that our fines are significant enough to cause pain in insurance companies in continuing this behavior,” Georgia Insurance and Safety Fire Commissioner John King said.

King recently announced $25 million in fines against insurers for establishing barriers to mental health care access, citing violations of Georgia’s mental health parity law.

Under the new proposals, the commissioner would also have broader authority to consider a company’s conduct when reviewing rate filings. Republican state Rep. Matt Reeves said regulators should examine all available evidence when insurers seek rate changes.

“If companies have not treated citizens right, that will be considered when they file their rates,” Reeves said. “If they have processed their claims, kept a clean record and cut their rates in the past, that will be considered.”

According to Atlanta News First, supporters say the legislation builds on tort reform measures passed last year to curb lawsuit abuse.

Mark Friedlander of the Insurance Information Institute said Georgia ranks 47th in personal auto affordability, adding that legal system abuse costs Georgians about $1,544 per year in what he called a “tort tax.”

House Speaker Jon Burns said recent reforms have already produced results, noting that 10 insurers have announced rate cuts. Atlanta News First reports Burns said the state is focused on stabilizing insurance costs and addressing affordability concerns.