Rising costs for insurance, with reports of refusals to pay claims, could spur legislation
Policy holders complain of expensive insurance that does not pay out as promised. At the same time, insurers see an unattractive market in
Hoyt, speaking at the final hearing last week of a committee of lawmakers concerned about insurance costs, said low profits can drive insurers from the market, reducing competition.
Profits were down 8.7% in the state versus 7.8% average gains nationally, he said. That kind of imbalance encourages companies to take their business elsewhere.
"Less availability can lead to higher prices," he said.
The House of
Despite the discouraging statistics from last year, the lawmakers heard some positive news.
Three companies recently announced reductions in their auto policy premiums, according to state Insurance Commissioner
King attributed the reductions to the state's anti-fraud efforts and to the "lawsuit abuse reforms" lawmakers adopted earlier this year, a reference to tort law changes that were a priority for Gov.
The legislation passed largely along party lines, with
Lawmakers on the House committee heard complaints about insurers who refused to pay claims because, the critics said, state laws did not hold them to account.
"Insurance companies expect policyholders to pay their bills on time, every time," said a woman who sued her insurer after months of battling over repair costs from a fallen tree. "When it's their turn to pay, there are often no real consequences for delay or denial."
Auto repair companies talked of insurers who refused to pay the full cost to repair cars to manufacturers' standards.
They shared stories about owners who fought insurers for months and finally paid out of pocket, desperate to get their vehicles back.
"The insurance company will drag their feet," said
Companies want to delay the repair process, he said, "hoping that everyone will just give up."
Johnson sized up the situation: "The current rights of the consumer are not much."
There were similar stories about tactics in medical care.
"Physicians don't determine medical necessity," Auyer said, "insurance companies do."
Rep.
Reeves, who serves as vice chairman of the
Insurance affordability will likely inspire legislation during the legislative session that starts in January, he said. "I think it'll be a robust session on insurance."



Rising insurance costs in Ga, claims issues, could spur legislation
High insurance costs still plague Georgia
Advisor News
- Investor use of online brokerage accounts, new investment techniques rises
- How 831(b) plans can protect your practice from unexpected, uninsured costs
- Does a $1M make you rich? Many millionaires today don’t think so
- Implications of in-service rollovers on in-plan income adoption
- 2025 Top 5 Advisor Stories: From the ‘Age Wave’ to Gen Z angst
More Advisor NewsAnnuity News
- Great-West Life & Annuity Insurance Company Trademark Application for “EMPOWER BENEFIT CONSULTING SERVICES” Filed: Great-West Life & Annuity Insurance Company
- 2025 Top 5 Annuity Stories: Lawsuits, layoffs and Brighthouse sale rumors
- An Application for the Trademark “DYNAMIC RETIREMENT MANAGER” Has Been Filed by Great-West Life & Annuity Insurance Company: Great-West Life & Annuity Insurance Company
- Product understanding will drive the future of insurance
- Prudential launches FlexGuard 2.0 RILA
More Annuity NewsHealth/Employee Benefits News
Life Insurance News
- Baby On Board
- 2025 Top 5 Life Insurance Stories: IUL takes center stage as lawsuits pile up
- Private placement securities continue to be attractive to insurers
- Inszone Insurance Services Expands Benefits Department in Michigan with Acquisition of Voyage Benefits, LLC
- Affordability pressures are reshaping pricing, products and strategy for 2026
More Life Insurance News