Mike Iverson, CEO of M D Iverson Group, a personal and business insurance provider, stated that despite Georgia being a significant market for insurance, companies have started to limit their operations in the state or withdraw entirely. He attributed these actions to Georgia's legal climate.
"Georgia Insurance Agents and consumers of insurance are facing increasing rates as well as the degradation of terms and conditions within insurance policies," Iverson said. "As the seventh largest insurance marketplace in the nation, Georgia accounts for $29 billion in written premium, of which $15.5 billion is written through the independent agent channel. Even with this large market, we have begun to see insurance companies leave the state or decrease their appetite for business in our state. The bottom line is that the health of our Georgia insurance marketplace is showing the strain."
In an article shared on the website of Insurance Agents of Georgia (IIAG), where Iverson previously served as president, he wrote about factors contributing to rising insurance costs nationwide such as inflation and a shortage of vehicle parts for repairs. However, he argued that Georgia's situation is "worse than the national average" due to numerous multi-billion-dollar claim settlements involving insurance providers as defendants. According to Iverson, trial attorneys are trying to "maximize" their claims through strategies like receiving funding from undisclosed third parties.
Iverson asserted that these lawsuits result in all Georgia consumers bearing higher costs for their insurance coverage. He suggested that implementing legislation similar to Florida's House Bill 837 could improve Georgia's legal landscape. However, he cautioned that more time needs to pass with this law in effect before its impacts on Florida's insurance market can be observed.
According to a press release on his website, Governor Ron DeSantis (R-Fla.) signed House Bill 837 into law in March 2023. The legislation aims to reduce the number of "frivolous" lawsuits in the state and prevent trial attorneys from engaging in "predatory" practices. It includes reforms such as eliminating attorney's fee multipliers and allowing insurers to limit their bad faith liability in instances with multiple claimants.
Iverson was elected president of IIAG in 2022, as per the company's website. He has held several other roles within IIAG, including chairman of the board, vice president, and Commercial Lines Technical Committee chair. He also serves as the CEO of the Fairburn-based M D Iverson Group.