Joint Statement from the Illinois Insurance Association, American Property Casualty Insurance Association, and National Association of Mutual Insurance Companies

As organizations committed to protecting consumers and promoting a fair, competitive, and diverse insurance market, the Illinois Insurance Association (IIA), the American Property Casualty Insurance Association (APCIA) and the National Association of Mutual Insurance Companies (NAMIC) strongly reject claims that insurers are arbitrarily hiking rates or shifting out-of-state costs onto Illinois policyholders and are releasing the following joint statement:

"Rates filed by insurance companies in Illinois reflect the rising cost of claims, which is primarily driven by local natural disasters and inflation, and are not influenced by losses in other states. Illinois experienced 120 reported tornadoes in 2023 alone - more than any other state. These extreme weather events, combined with elevated inflation and high material costs, have dramatically increased the cost of repairing and rebuilding homes.

"This reality puts enormous financial strain on everyone, including insurers. Over the past decade, State Farm alone has incurred $1.26 in losses for every $1.00 in premium earned in Illinois as they fulfill their commitment to stand by homeowners when disaster strikes. According to the National Association of Insurance Commissioners' most recent profitability report, homeowners' insurers in Illinois had a significant 8.3 percent underwriting loss over the last decade and a staggering 30.3 percent underwriting loss reported in 2023.

"Illinois' insurance market remains one of the most competitive in the nation and we are committed to maintaining the state's competitive market and ensuring insurers can continue to fulfill their promises to policyholders."