High insurance costs still plague Georgia

(The Center Square) – Georgia is one of the least profitable states in the nation for insurance companies, a trend that could lead to premium increases unless lawmakers act, according to a Georgia House of Representatives committee.

Georgia has over 400 personal home and automobile insurers, and approximately 500 commercial line insurers, according to Rob Hoyt, Professor of Risk Management and Insurance at the University of Georgia, who spoke to the Blue-Ribbon Study Committee on Insurance Rates at its final meeting. However, some insurers have pulled out of Georgia, he said.

While Georgia is the tenth-largest state for Property and Casualty premiums, it ranks 50th out of 51 among the states and D.C. for insurance company profitability, Hoyt said. If profitability continues to lag, companies could choose to reduce capacity which would drive up premium costs. Other issues that drive up premiums include inflation, medical costs and litigation trends and costs.

The average business liability claim costs $97,220, according to the 202...