Triple-I Warns Illinois Insurance Bill Would Raise Costs, Reduce Consumer Choice

Media Contact: Media@iii.org

MALVERN, Pa., April 29, 2026 –  A new Issues Brief from the Insurance Information Institute (Triple-I) found that legislation moving through the Illinois General Assembly would likely make property/casualty insurance less affordable and less available for consumers by constraining insurers’ ability to price risk accurately, without addressing the underlying causes of rising premiums.

The report examines Senate Bill 1486, which would impose additional regulatory requirements on insurers writing auto and homeowners coverage in Illinois. While intended to protect consumers, the proposal focuses on insurance pricing, rather than the cost drivers that are pushing premiums higher nationwide, including severe weather, higher repair and replacement costs, demographic shifts, fraud, and excessive litigation. Already this year, Illinois has experienced more tornadoes than any other state – nearly 100.

“Lawmakers want to help consumers, but proposals like Senate Bill 1486 risk doing the opposite,” said Sean Kevelighan, CEO, Triple-I. “Rising insurance premiums are driven by real-world costs such as severe weather, higher repair expenses and legal system abuse. When legislation focuses only on limiting pricing, it can reduce competition and leave consumers with fewer choices.”

The Issues Brief noted Illinois insurance remains more affordable than the national average, based on the Insurance Research Council’s Affordability Index, which measures insurance expenditures relative to median household income. Illinois homeowners’ and personal auto insurance affordability compares favorably with the U.S. average.

Triple-I warned limiting insurers’ ability to price risk accurately can erode policyholder surplus, the financial cushion insurers are required to maintain to pay claims. As surplus declines, insurers are forced to raise rates further or reduce their appetite for risk, resulting in less competition and fewer coverage options for consumers.

Other states provide cautionary and constructive examples. Florida, for instance, has seen improvements in insurance affordability after enacting reforms aimed at curbing legal system abuse and fraudulent claims. Additionally, California policymakers continue to grapple with the consequences of long-standing regulatory barriers to insurance availability, despite having rates below the national average.

Illinois is also a major hub for the property/casualty insurance industry, home to two of the five largest U.S. property/casualty insurers and two of the five largest insurance brokerage firms. The industry is a significant employer and investor in the state’s economy.

“Given the importance of the insurance sector to Illinois, policymakers should focus on solutions that strengthen resilience, reduce fraud and address excessive litigation,” said Kevelighan. “By addressing these underlying issues, we can protect consumers while maintaining a stable and competitive insurance market.”

About the Insurance Information Institute

Since 1960, the Insurance Information Institute (Triple-I) has been the trusted voice of risk and insurance, delivering unique, data-driven insights to educate, elevate and connect consumers, industry professionals, policymakers and the media. An affiliate of The Institutes, Triple-I represents a diverse membership accounting for nearly 50% of all U.S. property/casualty premiums written. Our members include mutual and stock companies, personal and commercial lines, primary insurers and reinsurers – serving regional, national and global markets.

About The Institutes

The Institutes® are a not-for-profit comprised of diverse affiliates that educate, elevate, and connect people in the essential disciplines of risk management and insurance. Through products and services offered by The Institutes’ 20 affiliated business units and backed by more than 115 years of experience as a trusted knowledge partner, we empower people and organizations to help those in need with a focus on understanding, predicting, and preventing losses to create a more resilient world. Learn more at Global.TheInstitutes.org.

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