John Kartch, communications director for Americans for Tax Reform, said that tort reform could potentially reduce the cost of living for households if proponents are not outpaced by the trial lawyer lobby. Kartch made this statement in a February 19 post on X.
"Time to rein in the trial lawyers," said Kartch. "Tort reform can help households reduce the cost of living."
According to Forbes, South Carolina is considering tort reform as a strategy to reduce costs and attract more businesses and residents. Governor Henry McMaster and state lawmakers view this initiative as complementary to tax relief efforts aimed at enhancing the state's economic appeal. Georgia recently enacted significant tort reform legislation, while Florida implemented reforms last year to curb lawsuit abuse. Consequently, Florida experienced the lowest average homeowners' premium increases in the nation, with four of its largest ten insurance carriers applying for rate cuts, even as residents in other states face 20% rate hikes.
In 2024, the Florida Office of Insurance Regulation (OIR) reported a decline in property insurance rate filings for the first time in years, indicating market stabilization. This improvement is attributed to legislative reforms enacted in 2022 and 2023 that strengthened consumer protections and encouraged insurer investment. Governor DeSantis further supported these efforts by signing House Bill 1611, which introduced additional consumer protections and expanded OIR’s regulatory authority.
A study from the U.S. Chamber of Commerce Institute for Legal Reform found that U.S. tort system costs reached a record $529 billion in 2022, averaging over $4,200 per household. The study also noted that tort costs are growing faster than inflation, with an average annual increase of 7.1% from 2016 to 2022. States like California, Georgia, Texas, and Illinois have some of the highest per-household tort costs. In contrast, West Virginia's tort reforms have led to more than a 20% reduction in tort costs since 2016, resulting in the lowest per-household cost in the nation—approximately $2,100 in 2022.
According to an article on InsuranceRateReporter.com, a survey by the American Property Casualty Insurance Association (APCIA) and Munich Re US found that plaintiff lawyer tactics contribute significantly to rising insurance costs with an estimated $529 billion impact on the U.S. economy. The survey revealed that 69% of Americans believe these practices drive up insurance premiums while 86% support legal reforms to address them. However, many respondents remain unaware of these tactics.
Kartch is associated with Americans for Tax Reform—a group advocating for lower taxes and free markets across all government levels—and focuses on federal tax policy among other issues.