Insurance industry opposes regulation, blames inflation, climate change for rate hikes

JB Pritzker and legislative leaders have suggested Illinois should exercise more regulatory authority over premiums that insurance companies charge for homeowners coverage. That began after State Farm Insurance announced it was raising rates in Illinois by an average 27.2%. Paul Valade/Daily Herald, June 21, 2021

Insurance industry officials defended recent homeowners insurance rate spikes this week, blaming such factors as inflation and climate change while warning that attempts to regulate their ability to set rates would be bad for consumers.

In testimony during a virtual meeting Wednesday of the Senate Insurance Committee, officials pushed back against criticisms by Gov. JB Pritzker and legislative leaders who said the hikes raise suspicions that Illinois homeowners are being char