By Penn Law
For years, insurance companies and corporate lobbyists have pushed for so-called civil justice reform in Georgia, claiming that lawsuits and “nuclear verdicts” are driving up insurance costs and harming businesses. The truth is, no such crisis exists. Now, with Senate Bill 68 (SB68), the Governor’s proposed solution, it is clear that this effort is nothing more than a corporate power grab designed to protect insurance industry profits at the expense of Georgia’s citizens. SB68 will not lower insurance premiums, improve healthcare, or create a fairer legal system. Instead, it will strip Georgians of their constitutional rights and make it harder for innocent victims to obtain justice.
The False Premise of Senate Bill 68
One of the primary arguments for SB68 is that it will lower insurance premiums, particularly for car insurance. But this claim falls apart when we examine the real drivers of insurance costs. Industry data shows that litigation is not responsible for rising premiums. Instead, insurance rates are influenced by the number of accidents, the rising cost of vehicle repairs, corporate profit margins, natural disasters, and economic factors like inflation and supply chain disruptions.
Consider this: bodily injury liability coverage—the portion of a policy that pays out if a driver is at fault and injures someone—makes up only 30% of a total premium. Meanwhile, property damage coverage, which includes liability, collision, and comprehensive, accounts for nearly 60%. Why? Because it costs far more to repair a car than to pay for an injury claim. Furthermore, umbrella policies providing $5 million in liability coverage cost as little as $557 per year. If litigation were truly a major cost driver, why would insurers charge so little for such high coverage? The answer is clear: SB68 is not about lowering premiums—it’s about increasing corporate profits.
The Insurance Industry’s Record Profits Tell the Real Story
Despite pushing the myth that restricting lawsuits will lower insurance rates, insurance companies are raking in record profits. In 2023 alone, the insurance industry made over $87 billion in investment profits, with 2024 projected to be even more profitable. Yet, rather than passing those savings to consumers, insurers continue raising premiums while lobbying for laws like SB68 that restrict an injured person’s ability to recover damages.
Insurance companies use a well-known playbook: delay payments, deny claims, and defend their profits at all costs. Data from the industry itself shows that claimants without attorneys are 70% more likely to receive no compensation. This isn’t because their claims lack merit—it’s because insurers make it difficult for victims to recover fair compensation. SB68 will only further enable insurers to deny claims and limit their financial responsibility.
The Myth of a Litigation Crisis
Georgia is not experiencing a litigation crisis. In fact, insurance companies’ own data disproves this narrative. Following the 2024 legislative session, reports showed that the number of claims in Georgia has remained stable when adjusted for population growth. Total payouts for claims have actually declined since 2016, when adjusted for inflation. If litigation were truly driving insurance costs, we would expect claims and payouts to be rising—but the opposite is happening.
Even the “nuclear verdicts” that proponents of tort reform claim are rampant are exceedingly rare. The Georgia Insurance Commissioner’s report found zero nuclear verdicts in personal auto liability cases—which make up the vast majority of insurance claims. In commercial cases, verdicts exceeding $10 million accounted for at most 2% of claims between 2014 and 2023. The reality is that Georgia’s legal system is functioning as it should, ensuring accountability for extreme negligence while keeping verdicts reasonable.
Healthcare and Small Businesses Will Not Benefit
Advocates of SB68 claim that limiting lawsuits will lower healthcare costs and help small businesses. But history proves otherwise. Over the past 30 years, the number of physicians in Georgia has steadily increased, while medical malpractice payouts have declined by over 50%. However, medical malpractice insurance premiums continue to rise. If tort reform were truly the key to lowering healthcare costs, we would have seen those savings passed on to doctors and patients—but we haven’t.
Similarly, small businesses will not see relief from rising insurance costs. Insurance companies set their own premiums, and when tort reform passes, insurers keep the savings instead of lowering rates. In states like Texas, which enacted tort reform years ago, insurance companies continued raising premiums despite restrictions on lawsuits. Georgia’s small businesses should not be deceived into believing that SB68 will help them.
The Erosion of Constitutional Rights
Perhaps the most disturbing aspect of SB68 is its direct attack on constitutional rights. The Seventh Amendment of the U.S. Constitution guarantees the right to trial by jury, a right also enshrined in Georgia’s Constitution. SB68 undermines this fundamental right by:
· Erasing 292 years of Georgia law going back to 1733.
· Making the trial process more expensive and burdensome for plaintiffs.
· Creating procedural hurdles that benefit corporations over individuals.
Who Benefits from SB68? Not You.
Governor Kemp has made tort reform a priority, but the only real beneficiaries are insurance companies and big business. While insurance executives collect record-breaking bonuses, Georgia’s families, workers, and small businesses will be left with weakened legal recourse when harmed by negligence or misconduct.
Everyday hardworking Georgians must stand together to reject this unjust proposal. The only real crisis is an insurance industry that continues to rake in historic profits while limiting the rights of those they claim to serve.
The Bottom Line: SB68 Is a Corporate Giveaway
SB68 will not lower your insurance rates, will not improve access to healthcare, and will not protect small businesses. What it will do is shield corporations from accountability and make it harder for injured Georgians to seek justice.
We must reject these deceptive measures and demand real reform that puts people over profits. Georgia lawmakers must vote NO on SB68.