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.