Georgia lawmakers are preparing to address the rising costs of insurance that have increasingly frustrated policyholders. With complaints about high premiums and insufficient payouts, state leaders are considering legislative measures to tackle these issues. In 2025, Georgia ranked last in profitability for insurance companies among all states and the District of Columbia, according to Robert Hoyt from the University of Georgia’s Terry College of Business.
During a recent hearing, Hoyt highlighted that low profitability can lead insurers to exit the market, ultimately reducing competition and driving prices higher. In Georgia, profits for insurance companies fell by 8.7% compared to a national average gain of 7.8%. He emphasized that this imbalance can lead to fewer options for consumers, stating, “Less availability can lead to higher prices.”
Legislative Responses and Insurance Rate Changes
The House of Representatives’ Blue-Ribbon Study Committee on Insurance Rates convened for its final hearing in Gwinnett County on December 30, 2025, after holding sessions in cities including Atlanta, Savannah, and Macon. Despite the concerning statistics, John King, the state’s Insurance Commissioner, shared some positive developments. Three insurance companies recently announced reductions in their auto policy premiums. Safeco Insurance Company of Illinois is cutting rates by 5.1%, while its Indiana counterpart is reducing rates by 4.9%. Additionally, Liberty Mutual Personal Insurance Company is lowering rates by 5.7%.
King attributed these reductions to the state’s anti-fraud initiatives and reforms in tort law advocated by Governor Brian Kemp earlier this year. While some lawmakers praised the reforms, others, primarily from the Democratic Party, argued that the changes primarily benefit insurers by limiting liability and restricting claimants’ rights.
Consumer Concerns and Claims Processing Issues
Throughout the hearings, numerous complaints emerged from policyholders who felt inadequately protected. A woman recounted her experience of suing her insurer after enduring a lengthy battle over repair costs for damage caused by a fallen tree. “When it’s their turn to pay, there are often no real consequences for delay or denial,” she said, highlighting a common frustration among consumers.
Auto repair professionals also voiced concerns about insurers refusing to cover the full cost of repairs to meet manufacturers’ standards. Frankie Johnson, owner of Styles Auto Care in Cartersville, noted, “The insurance company will drag their feet, hoping that everyone will just give up.” He described instances where clients had to pay out of pocket after prolonged disputes with insurers.
Similar challenges were reported in the medical sector. Rachael Auyer from the Georgia Society of Orthotists and Prosthetists shared a poignant case involving a client who lost her leg in an accident. Auyer explained that the insurance company denied coverage for a running prosthesis, deeming it unnecessary, despite the client’s active lifestyle as a marathon runner. “Physicians don’t determine medical necessity,” Auyer remarked, “insurance companies do.”
In light of these consumer concerns, Representative Matt Reeves, who chairs the study committee, indicated that lawmakers will closely examine pricing, profitability, and claims processing standards. Reeves, also serving as vice chairman of the House Judiciary Committee, stated that the state must reassess penalties for insurance companies acting in bad faith to ensure they are sufficient to deter misconduct. He anticipates that issues related to insurance affordability will inspire significant legislative action during the upcoming session beginning in January 2026.
“I think it’ll be a robust session on insurance,” Reeves remarked, underscoring a commitment to addressing the pressing issues faced by consumers in Georgia’s insurance market.
