Senate Bill 714 and House Bill 4273 Pass the Illinois Legislature; Illinois Residents Likely to Experience Higher Home & Auto Insurance Costs and Fewer Options for Coverage if[...]

SPRINGFIELD, Ill. - The Illinois Insurance Association (IIA), the American Property Casualty Insurance Association (APCIA), and the National Association of Mutual Insurance Companies (NAMIC) today issued the following joint¿statement¿after Senate Bill 714 and House Bill 4273 passed the Illinois Legislature. The bills now head to the governor.

"If Senate Bill 714 and House Bill 4273 are signed into law, Illinois residents need to be prepared for the potential impact: higher home and auto insurance costs and fewer options for coverage.

"Proponents of the measure claim the bills will protect consumers from rising insurance costs, but in reality, the bills do nothing to address the factors contributing to higher premiums, such as higher repair costs, more severe weather, and legal system abuse. Instead, the bills implement a fundamental shift in Illinois' regulatory environment and move the state towards a more rigid rate-approval system similar to struggling insurance markets like California. This shift will make it harder for insurers to respond in real-time to market conditions and adjust rates up or down based on actual claims experience.

"The impacts may not be felt immediately, but in the long term, the state's current highly competitive market is likely to suffer and consumers could ultimately pay the price through higher insurance costs and more limited coverage options.

"A recent U.S. News & World Report analysis, for example, found that Illinois has the sixth-lowest auto insurance premiums in the country - a direct result of strong competition, broad consumer choice and a regulatory framework that allows insurers to respond quickly to changing market conditions. This harmful legislation puts this success at risk."