|
The Consumer Federation of America released a new report that
shows Illinois homeowners saw their insurance premiums increase
by an average of 50% over the past three years. Only Utah (56%)
was higher.
The study authors of “Overburdened: The Dramatic Increase in
Homeowners Insurance Premiums and its Impacts on American
Homeowners” used proprietary industry data purchased for this
research to evaluate the growth in insurance premiums for
typical homeowners in every ZIP code in the country.
Douglas Heller, CFA director of Insurance, said the increases
come as the U.S. property and casualty insurance industry sits
on a $1.1 trillion surplus.
“That massive surplus doesn't mean that insurers can’t ask for
more rates if they need it, but regulators should be asking
tougher questions and demanding more transparency to determine
if all these rate hikes are truly justified,” said Heller.
From 2021 to 2024, annual insurance premiums for a typical
homeowner increased by an average of $648 across the country. By
2024, typical homeowners paid $3,303 per year for homeowners
insurance. American homeowners saw their insurance premiums
increase by an average of 24% over the past three years, but it
was more than double the percentage in Illinois.
“Here in Illinois, insurers are able to do this without any
meaningful scrutiny as Illinois regulators have no authority to
reject or modify excessive property or casualty insurance rate
hikes,” said Abe Scarr, director of the Illinois Public Interest
Research Group.
CFA calls on lawmakers and regulators to require insurance
companies to publicly disclose all transactions with consumers
in ways that mirror the detailed data reporting of mortgage
applications.
“We’ve seen the insurance industry transition from climate
denialism to climate opportunism,” said Scarr. “These problems
will only get worse and it's time for policymakers to get more
proactive to ensure a stable and fair homeowners insurance
market.”
|
|
