Gov. Brian Kemp's push for tort reform in Georgia continues to gain momentum as both Senate Bill 68 and Senate Bill 69 progress through the legislative process as the end of the legislative session on April 4 approaches.
As part of Governor Kemp’s broader initiative to tackle rising auto insurance premiums and excessive litigation costs, the bills have gained significant momentum. SB 68 has passed both the Senate and the House, while SB 69 has cleared the Senate.
With average auto insurance premiums in Georgia reaching $2,800 annually — a 21% increase from 2023 — the proposed reforms aim to reduce inflated litigation costs, which totaled nearly $20 billion in 2022.
As such, tort reform is Kemp’s top priority for the 2025 legislative session.
"Small business owners have reported that insurance premiums have increased anywhere from 30% to 100% over the last few years, costing them thousands—if not millions—just to maintain basic coverage," Kemp said in a January press conference in which he discussed the bills. "Some insurance companies have pulled out of the state, leaving businesses with fewer options, while others are spending massive amounts to defend against excessive lawsuits. Ultimately, these rising costs are being passed on to consumers."
The tort reform package currently making its way through the state legislature was first unveiled on Jan. 30.
Kemp has emphasized the urgency of these reforms, warning that without action, Georgia businesses and residents will continue to face unsustainable insurance and litigation costs. "The people above me, the people around me right now, we cannot afford another year of this," Kemp said when unveiling the bills. Kemp has threatened to call a special legislative session to address the issue if the legislation does not pass prior to the end of the legislative session on April 4.
A key component of the reform package is Senate Bill 68, which is designed to curb the effects of "nuclear verdicts" — large jury awards that often result in bankruptcies for businesses and hospitals. These excessive damages, often seen in auto accident and medical malpractice cases, have led to rising insurance premiums.
The bill targets practices such as "anchoring," where attorneys influence juries to award inflated settlements, and also allows for the introduction of seatbelt evidence in auto accident trials, a change that could lower insurance claims and, proponents argue, reduce premiums.
On March 20 the Georgia House of Representatives passed Senate Bill 68 by a narrow margin, with some Democrats and Republicans voting against it.
The bill now returns to the Senate for further consideration. Senate Bill 69 seeks to regulate third-party litigation financing (TPLF). This practice allows external investors to fund lawsuits in exchange for a portion of any resulting settlement, often inflating litigation costs and prolonging legal proceedings.
By restricting TPLF, the bill aims to prevent foreign entities and predatory lenders from exploiting the legal system, safeguarding business confidentiality, and promoting a fairer legal environment for Georgia's residents.
Senate Bill 69 passed the Georgia State Senate with unanimous, bipartisan support and is now under consideration in the House of Representatives which continues to debate the bill.
Supporters of the legislation argue these changes will improve Georgia's economic competitiveness and reduce insurance premiums.
“SB 68 will curb lawsuit abuse while protecting families, small businesses, the medical community, and Georgia’s economic competitiveness,” Chris Clark, President & CEO of the Georgia Chamber said in a statement. “For the past 20 years, securing tort reform has been the top legislative priority of the Georgia Chamber. The House passage of SB 68 takes us to the brink of finally delivering meaningful tort reform for Georgia. We look forward to working with Georgia’s legislative leaders to do right by Georgians and finish the job by getting both SB 68 and SB 69 signed into law so our courts can focus on justice—not jackpots.”
Georgia’s rising legal costs have contributed to the state's continued placement in the American Tort Reform Foundation’s annual "Judicial Hellholes®" report, now ranked No. 4 in the nation.
The state's "tort tax" — the cost of excessive litigation passed on to consumers — amounts to $1,372 per person annually, higher than neighboring states.