Tort Reform? No, Insurance Reform!

By Darrren Penn, Penn Law

In Georgia, debates around tort reform have drawn recent attention, yet the data reveals a misdiagnosis of the problem. Despite claims that tort reform is necessary to address rising insurance costs and excessive litigation, a look at the data reveals that the real issue lies with the practices of the insurance industry. Georgia does not need tort reform; it needs insurance reform.

The Misconception of a Litigation Crisis

Proponents of tort reform, Big Business and Insurance Companies, argue that Georgia is experiencing a litigation crisis. This assertion does not align with the facts. Insurance Companies’ own data show that the frequency of insurance claims has remained stable despite Georgia’s notably high accident rate—almost double the national average of 3.7 accidents per 100 people annually compared to 1.9 nationally. David L. Stegall, Analysis of Insurance Commissioner King Report (Nov. 18, 2024), at 10. When adjusted for population growth, claims are actually decreasing, even as accident rates remain high. Id. at 10-11.

Further dismantling the myth of runaway litigation, the insurance data proves that so-called “nuclear verdicts” (which the insurance industry arbitrarily defines as verdicts exceeding $10 million, regardless of the harm involved) are exceedingly rare in Georgia. In personal auto liability cases, which constitute 89% of the data analyzed, no “nuclear verdicts” occurred between 2014 and 2023. Even in commercial liability cases (cases involving claims against commercial businesses), “nuclear verdicts” represented a mere 2% of all claims during the same period. These findings expose the claims of a litigation crisis as exaggerated, unsupported, and contrary to the truth. Id. at 4, 18-19.

Insurance Industry Practices: The Real Problem

Rather than excessive litigation, the focus should be on insurance industry practices that harm Georgia consumers. Insurance companies have demonstrated a troubling pattern of denying claims to unrepresented individuals, who constitute nearly 60% of submitted claims. Alarmingly, according to insurance industry data, unrepresented claimants are 70% more likely to receive no recovery whatsoever. This forces many Georgians to hire attorneys simply to secure any form of compensation, once again contradicting the narrative that attorneys are the root cause of rising costs. Stegall, at 3, 5.

Despite their public complaints about rising costs, insurance companies operating in Georgia are reaping unprecedented profits. In 2023, they earned over $87 billion in investment income nationwide. 2024 was yet another historically profitable year for Georgia’s insurance companies reaping in billions more in profits. David L. Stegall, Georgia Insurance Market Review (Nov. 18, 2024), at 3. And, the insurance data shows that Georgia’s insurance defense costs are also remarkably low, accounting for only 3.3% of total earned premiums compared to the national average of 3.7%. Id. at 13. In other words, despite the fact that we have more accidents in Georgia, insurance companies pay less in both payments to victims and in defending claims.  If the national average matched Georgia’s rate, U.S. insurers would have saved $6.9 billion in 2023 alone.

The Case for Insurance Reform

The disparities in the insurance industry’s treatment of claims and its profit-driven operations highlight the urgent need for reform. First, Georgia’s insurance companies must be held accountable for their claim denial practices. Transparency and stricter regulations can ensure that unrepresented claimants are not unfairly disadvantaged.  How many Georgians are still in a state of devastation after Helene because insurance companies have not done what they are supposed to do–what they are contractually obligated to do? This sort of conduct must stop now. 

Second, reforms should address the disconnect between falling payouts and rising premiums. For example, medical malpractice premiums in Georgia have decreased by 19% since 1990, adjusted for inflation, the number of large claims against physicians dropped by more than 50% the last 20 years, and the average payout per Georgia physician has declined 61% over that time. Bernard S. Black, Analysis of Georgia Medical Malpractice Environment (Nov. 15, 2025) at 2-3. Despite this reality of reduced claims and payments, physicians and patients have not fully benefited from these savings. This demonstrates how insurance companies prioritize profits over consumer welfare. Id. at 14-17. 

Conclusion

The data makes a compelling case: Georgia’s legal environment is not the problem; the insurance industry is. Calls for tort reform are misguided distractions that fail to address the real issues plaguing Georgia consumers. By enacting comprehensive insurance reform, Georgia can ensure fair treatment for claimants, curb exploitative practices, and create a system that serves its citizens rather than insurance company profits. It’s time to shift the conversation from tort reform to insurance reform.

Big Business’s Tort Reform Agenda: A Threat to Republican Values and Constitutional Rights

By Darren Penn, Attorney, Penn Law

Big Business and Insurers’ push for tort reform in Georgia is not only a direct assault on the constitutional right to trial by jury but also a political miscalculation that risks alienating Republican voters. By pushing measures that weaken this fundamental right, Big Business and Insurers are asking our leaders to undermine the very principles of individual liberty and accountability that the Republican Party has long championed. 

This move is not only anti-American and anti-democratic but also a dangerous precedent that could pave the way for attacks on other constitutional rights, such as those under the First and Second Amendments.

The right to trial by jury is enshrined in both the U.S. Constitution (7th Amendment) and the Georgia Constitution. It is a right that the Founding Fathers fought for after realizing the critical importance of colonial juries in protecting Americans from tyrannical laws imposed by the British monarchy and parliament. The trial by jury system is a cornerstone of democracy, ensuring that citizens—not corporations, insurance companies, or government officials—serve as the arbiters of justice. 

This right is inviolate, meaning it cannot and should not be tampered with. Yet Big Business and Insurers’ tort reform agenda seeks to do exactly that by imposing limits on damages, restricting access to courts, and favoring the interests of powerful entities over those of ordinary Americans. This is a playbook they have attempted in every state. 

This approach is fundamentally anti-democratic. It shifts power away from the people and toward an elite class of corporations and insurers, allowing them to avoid accountability for their actions. It creates a system where victims of negligence or misconduct—whether from medical malpractice, unsafe products, or bad faith insurance practices—are left without meaningful recourse. For a party that prides itself on defending individual freedoms, this is a direct contradiction of Republican values.

Even more concerning for Republicans is the precedent this sets. By endorsing measures that weaken the constitutional right to trial by jury, “tort reformers” and their allies open the door for the erosion of other constitutional rights. Republicans should consider the implications of this dangerous precedent: if the 7th Amendment can be weakened for political or financial gain, what’s stopping future leaders from targeting the 2nd Amendment? Once the integrity of one constitutional right is compromised, it becomes far easier for others to be undermined. Today, it’s the right to trial by jury. Tomorrow, it could be the right to bear arms.

The so-called tort reform agenda is not only anti-American and anti-democratic—it is politically short-sighted. By prioritizing the interests of corporations and insurers over those of individual citizens, our leaders risk alienating the Republican base and undermining trust in the party’s commitment to defending constitutional rights. Republicans in Georgia should demand that their leaders reject this assault on the 7th Amendment and reaffirm their dedication to protecting all constitutional freedoms. Anything less is a betrayal of the principles that define the party and the nation.

Tort Reform Betrays True Republican Values

By Darren Penn, Attorney, Penn Law

At its core, the Republican Party has long stood for principles of personal responsibility, limited government, and strict adherence to the Constitution. These values champion the idea that individuals and businesses alike should be held accountable for their actions and that every American has the right to seek justice when wronged. However, the recent push for tort reform by the insurance industry undermines these fundamental tenets, protecting the wealthy elite at the expense of everyday Americans. Far from being a true reflection of Republican values, tort reform is an affront to the ideals of accountability and the Constitution.

The right to trial by jury is enshrined in the U.S. Constitution, specifically in the 7th Amendment, and echoed in Georgia’s Constitution. It ensures that disputes between citizens or against powerful entities can be resolved fairly by a jury of peers.

Tort reform, which often involves caps on damages, restrictions on filing lawsuits, or forced arbitration, directly weakens this constitutional right. By imposing limits on how and when individuals can seek justice, tort reform tilts the scales of justice in favor of large corporations and the wealthy, effectively eroding one of the most democratic mechanisms in the judicial system.

For a party that prides itself on upholding the Constitution, this is a significant betrayal. Tort reform restricts citizens’ access to a jury trial, enriching powerful industries such as insurance companies, pharmaceutical firms, and healthcare providers at the cost of justice or fairness to ordinary citizens.

These industries, which reap massive profits, are shielded from full accountability when their negligence or misconduct harms others. This directly contradicts the Republican ethos of personal responsibility, which dictates that wrongdoers should bear the consequences of their actions.
Big business and insurance companies push tort reform to protect their profits at the expense of everyday citizens. Hardworking Georgians rely on the civil justice system to hold powerful entities accountable when harmed. Whether it’s a small business owner injured by a defective product, a family devastated by medical malpractice, or a worker hurt due to corporate negligence, tort reform limits their ability to seek fair compensation.
Supporters claim it curbs “frivolous lawsuits” and lowers costs, but the reality is far different. Tort reform blocks legitimate claims, shields corporations from accountability, and conceals unsafe practices. Instead of protecting the public, it shifts the burden of corporate negligence onto innocent citizens, letting the wealthy evade responsibility. And Georgia law already provides for penalties against those filing frivolous lawsuits.
True Republican values demand accountability. Shielding corporations from consequences is not conservatism—it’s cronyism. If Republicans are serious about upholding the Constitution and protecting the rights of all Americans, they must reject tort reform and stand for justice, not just the privileged few.

Penn Law Supports the Georgia Rights Alliance

The 2021 Georgia legislative session is expected to include a heated debate on tort reform. Several bills in the upcoming General Assembly will likely include revisions to Georgia’s current legal procedures. Penn Law supports the Georgia Rights Alliance (GRA), a group of Georgia citizens committed to protecting the Constitutional rights of all Americans. The GRA is working to defend against corporate lobbyists, insurance companies, and big corporations that attempt to imbalance the scales of justice within our court system in their favor .

We believe that every Georgian deserves the right to seek justice in a court of law against the person or corporation that wronged them. More than 30 lobbying organizations are expected to combine forces for the purpose of passing tort reform legislation during the 2021 session. Proposed bills are projected to seek limitations such as increasing the burden of proof for certain injured individuals in proving their claims and capping awards for punitive damages, which are designed to punish persons or entities whose conduct is considered egregiously negligent or intentional.

Now is the time to educate Georgians and to raise awareness of these potential changes. As a voice for victims, we believe that every citizen should have the ability to fight the person or organization that harmed them in a court of law where they will be held accountable for their actions.

Penn Law supports the Georgia Rights Alliance, and we recommend visiting their website at  https://georgiarightsalliance.org to sign up for more information and to find your legislative representative. Join the GRA Facebook page https://www.facebook.com/GARightsAlliance/ to stay up-to-date on these issues. Lastly, we urge all to write to your legislators to let them know you want to stand up against special interest groups and the lobbyists from large corporations and insurance groups.

Now is the time for your voice to be heard.

Tort Reform Isn’t Right for Georgians

Chris Clark, president and CEO of the Georgia Chamber of Commerce, recently wrote a letter to members claiming lawsuit reform is essential to business growth in Georgia. Not only is this false, but it is also a scare tactic which will only hurt Georgians. As a small business owner and long-time Chamber member, I feel compelled to respond to these falsities.

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