Dear Editor,
Georgia Governor Brian Kemp recently “unveiled [an] ... overhaul of the state legal system ... (to) rein in rising insurance rates” ... ( Atlanta Journal-Constitution, Feb. 3, 2025).
Apparently, the cost of liability insurance and the number of recent large jury trial settlements borne by the Georgia state government concern Gov. Kemp.
Certainly, the cost of insurance for homes, autos, and liability protection has risen dramatically in the past two years. Added to this has been the increased rates for electrical power imposed by Georgia Power. These increased living costs have created a financial crisis for many families and small businesses during the recent raging inflation that has affected the cost of almost everything needed in our everyday lives.
In the practice of medicine, the provision of “standard of care” services is based upon a correct diagnosis. Applying this dictum to Gov. Kemp: he has failed to come up with the correct diagnosis in attempting to solve the insurance problem with tort reform (e.g. limiting the ability to bring certain lawsuits and curbing excessive jury awards). Tort reform has been enacted in other states (e.g. California), without noticeable effect on reducing insurance premiums, and in Georgia where caps on medical malpractice awards were declared unconstitutional by the Georgia Supreme Court in 2010.
Insurance companies, despite recent natural disasters (wildfires in California, hurricanes, and flooding in the Southeastern United States and elsewhere), have done little to nothing to maintain reasonable premium rates for their customers while continuing to earn huge annual profits and award exorbitant annual bonuses to their CEOs (in some instances more than $20 million).
The establishment of reasonable and affordable insurance rates for policyholders and costs for electrical power ratepayers requires responsible and informed oversight by our established state government entities, namely the State Insurance Commissioner (InsCo) and the Public Service Commission (PSC).
These government facilities need to do their jobs in regulating those businesses whose functions come under the purview of their jurisdictions. The InsCo and the PSC need to be adequately funded to have the personnel and expertise required to make informed decisions about any increases in premiums or rates, respectively, that are proposed.
It seems that such has not been the case in recent years, especially in relation to the inflated home, auto, and liability insurance premiums and the large cost overruns of the Vogel nuclear power plant, which the PSC allowed to be passed on to ratepayers. A “rubber stamp” is not an effective protection for the consumer public, which deserves better from its state government.
Unmeritorious lawsuits will not be limited until “ambulance-chasing” trial lawyers are prevented from taking “contingency fees” and trial judges properly instruct juries. On the other hand, the rights of citizens to bring meritorious lawsuits must not be abridged! But these are issues that affect only a tiny segment of our society.
At the same time, outrageous insurance premiums and electrical power bills impact the everyday economic well-being of most Georgia families. Hopefully, Gov. Kemp and the Georgia state legislature will make the correct diagnosis before proceeding with any legislation regarding changes in Georgia’s regulatory functions and responsibilities.
Roger A. Meyer, MD, Greensboro