Overview

• Nearly 1.5 million State Farm policyholders in Illinois will see average annual premiums rise by roughly $746 under the insurer’s 27.2% increase effective July 15 for new policies and August 15 for renewals.
• The company will require a minimum 1% wind/hail deductible on all homeowners policies to manage costs from severe weather claims.
• State Farm reported a 2024 loss ratio of $1.26 in claims for every dollar of premium collected and said catastrophe losses exceeded its reserves in 13 of the past 15 years.
• Governor JB Pritzker denounced the hike as unfair and demanded the Department of Insurance be granted authority to modify or reject excessive rate filings.
• Consumer advocates and legislators have proposed legislation to impose transparency requirements and formal rate-review powers to protect policyholders.