TRENTON N.J. – The Property Casualty Insurers Association of America (PCI) is urging the New Jersey Senate to defeat legislation that could dramatically increase insurance costs by putting the interests of trial lawyers ahead of consumers.

Legislation on the Senate floor, S.2144, has the potential to result in a huge increase in unnecessary litigation in New Jersey and harm consumers. Studies show that the enactment of legislation similar to S. 2144 has increased the amount of litigation and liability costs. If increases like this occurred in New Jersey, it could ultimately affect consumers with higher insurance premiums.

“PCI is strongly opposed to S.2144, which encourages unnecessary litigation and may dramatically increase insurance costs for all consumers without providing new protections,” said Micaela Isler, assistant vice president, state government relations for PCI. “New Jersey already has among the strongest statutes and regulations in the country when it comes to protecting consumers from unfair claim settlements. The Department of Banking and Insurance closely monitors insurers’ conduct and has been an aggressive regulator in this regard which makes this bill not only unwarranted, but a windfall for the trial bar as it is likely to increase litigation and costs. With all these protections and remedies for policyholders in place, one must ask why this legislation is necessary?”

Senate Bill 2144 could be heard on the Senate Floor as earlier as Thursday, April 12, 2018.

PCI is composed of nearly 1,000-member companies, representing the broadest cross section of insurers of any national trade association. PCI members write $220 billion in annual premium, 37 percent of the nation’s property casualty insurance. Member companies write 44 percent of the U.S. automobile insurance market, 30 percent of the homeowners market, 35 percent of the commercial property and liability market and 37 percent of the private workers compensation market.

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