MALVERN, PA — Rising homeowners’ insurance premiums are driven by mounting risks, not by insurers themselves, according to a new Issues Brief released by the Insurance Information Institute (Triple-I). The report cautions Illinois policymakers against rate regulation, arguing that such measures could destabilize the state’s relatively affordable and competitive market.
“While calls for rate regulation may appear politically appealing, it is critically important to appreciate that recent increasing insurance rates are a reflection of the risk, rather than the cause,” said Sean Kevelighan, CEO of Triple-I. “Premium increases reflect real, escalating costs, from natural disasters to inflationary pressures to legal system abuse. What’s more, Illinoisans pay less than the national average for insurance, reflecting a relatively healthy marketplace with strong competition. Any attempts to artificially manipulate actuarially proven pricing methods would only put the state’s market in jeopardy, as we are seeing in other states.”
Key findings from the report underscore that Illinois homeowners’ insurance remains more affordable than the national average, nearly on par with Utah—the most affordable state. Premiums, the brief notes, mirror long-term pressures such as climate-related disasters, demographic shifts, rising construction costs, and inflation that have increased claim expenses nationwide.
Triple-I also emphasized that restricting insurers’ ability to set rates in line with risk has already led to shrinking market participation in other states, limiting options for consumers. Instead, the report urges investment in mitigation and resilience strategies, infrastructure improvements, reforms to reduce litigation costs, and adoption of best practices from other jurisdictions.
Beyond consumer protection, the insurance sector plays a significant economic role in Illinois. In 2021, the property/casualty industry contributed an estimated $41.9 billion to the state’s GDP, supported more than 155,000 direct jobs, and financed public infrastructure through bond investments.
The report frames resilience, collaboration, and systemic reforms—not regulation—as the most constructive path forward to safeguard both consumers and the long-term health of the state’s insurance market.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.