Insurance Industry Urging Illinois Not to Give State Authority to Homeowners Insurance Regulate Rates

Insurance industry officials are urging Illinois lawmakers not to give the state more authority to regulate homeowners insurance premiums. Capitol News Illinois reports industry officials testified this week before the Senate Insurance Committee.

Governor JB Pritzker has urged lawmakers to take action during the upcoming fall veto session. That came after Bloomington-based State Farm Insurance announced it was raising premiums in Illinois by an average of more than 27 percent.

Illinois is the only state in the nation where regulators do not have authority to approve or reject premium increases. But industry officials say that’s because market competition is a more effective way of regulating prices.

So far, the committee has not considered any specific bill to regulate homeowners’ insurance rates.