Georgia Insurance Department Addresses Fraud and Consumer Education Challenges

The Blue-Ribbon Committee on Insurance Rates convened on August 28, 2025, to address critical issues affecting the insurance landscape in Georgia. The meeting, chaired by Chairman Lumsden, focused on enhancing the state's appeal to insurance carriers and tackling prevalent fraud issues.

The session began with discussions on recent changes to Georgia's captive insurance regulations, aimed at attracting specialized insurance providers. Chairman Lumsden emphasized the importance of a stable regulatory environment, stating that Georgia's transparency in rules and regulations has made it an attractive destination for insurance companies. He noted that the state is seeing an influx of carriers due to these favorable conditions.

A significant portion of the meeting was dedicated to addressing the issue of insurance fraud, particularly in the auto and healthcare sectors. Commissioner Williamson highlighted that auto insurance is the most affected line, with healthcare also experiencing notable fraud challenges. He mentioned that while workers' compensation remains stable, there are emerging issues with fraudulent certificates in the construction industry, prompting collaboration with the workers' compensation board to enhance oversight.

The committee also discussed consumer education regarding insurance policies. Representatives expressed concerns about constituents' understanding of their coverage, especially following recent storms. The Commissioner outlined ongoing efforts to educate consumers through community outreach, including visits to local organizations and encouraging relationships with insurance agents. He stressed the importance of agents in helping consumers navigate their options and understand their policies.

The meeting concluded with a discussion on the authority of the insurance department regarding premium rate adjustments. While there was a misconception that the Commissioner has unilateral control over rates, it was clarified that the department evaluates requests from insurance companies based on established criteria.

Overall, the meeting underscored Georgia's commitment to fostering a competitive insurance market while addressing fraud and enhancing consumer education. The committee plans to continue its efforts in these areas, with a focus on collaboration and transparency moving forward.