Sean Kevelighan, CEO of the Insurance Information Institute (III), said that legal system abuse is contributing to increased insurance costs in Georgia, emphasizing the necessity for tort reform to address rising claims expenses. This statement was made in a report on February 13.
"There must be more work done to curb legal system abuse, as insurers are seeing significant increases in claims costs when attorneys enter into the picture," said Kevelighan.
A 2024 Insurance Research Council report indicates that in 2022, Georgia ranked 47th nationwide in personal auto insurance affordability, with only Louisiana, Florida, Mississippi, and New York being less affordable. Over the past eight years, Georgia's personal auto insurance costs have risen by 5.6% annually, nearly double the U.S. average of 3.3%. This increase has resulted in an average annual expenditure of $1,347 for personal auto insurance in Georgia, approximately 20% higher than the national average. Concurrently, Georgia's median household income remains 9% below the U.S. average, exacerbating the financial burden on residents.
According to the American Tort Reform Association (ATRA), in 2023, an estimated $2.4 billion was spent on over 26 million local legal services advertisements—including television, radio, print ads, and billboards—soliciting legal claims in Georgia. This extensive advertising correlates with increased litigation and contributes to higher insurance premiums for consumers. The report notes that aggressive marketing by personal injury attorneys, often referred to as "billboard attorneys," plays a role in escalating claims costs and consequently raising insurance rates.
On January 30, Georgia Governor Brian Kemp introduced a tort reform package aimed at revising liability standards and limiting recoverable medical damages to actual amounts paid while regulating third-party litigation financing. The legislation also proposes allowing seat belt usage evidence in civil cases to provide additional context in legal proceedings. These reforms are intended to reduce inefficiencies within the legal system and offer a more predictable framework for insurers and businesses.
According to III, Kevelighan has served as CEO since 2017 and brings experience in public affairs and insurance industry policy. Before leading III, he held senior roles at Zurich Insurance Group and the U.S. Treasury Department focusing on risk management and financial policy. Kevelighan advocates for data-driven solutions to insurance challenges by highlighting the impact of legal system abuse on rising claims costs.
Founded in 1959, the Insurance Information Institute is a U.S.-based nonprofit organization dedicated to improving public understanding of insurance—what it does and how it works. For over six decades, III has served as a primary source of factual information and credible analysis for consumers, industry professionals, policymakers, and media outlets.