Illinois Governor Challenges State Farm Homeowners Insurance Rate Hikes

Illinois Governor JB Pritzker has publicly addressed State Farm's recent decision to increase homeowners' insurance rates in the state, expressing concern over the justification for the hikes. The Governor highlighted that State Farm's rate increases are based on catastrophe loss figures that diverge from the Illinois Department of Insurance's analysis, suggesting an attempt to transfer costs from other states onto Illinois policyholders. Alongside premium increases, State Farm plans to raise deductibles and reduce claim payouts, which would cumulatively increase costs for Illinois homeowners without corresponding benefits in coverage.

In response, Governor Pritzker has instructed the Illinois Department of Insurance to utilize regulatory tools to maintain fair competitive practices and protect local consumers. He has also urged the state legislature to develop legislative measures during the upcoming veto session to curb excessive rate increases by insurers, aiming to support transparency and fairness in the state's insurance market.