The property insurance industry is celebrating the defeat of legislation in Illinois that would have given state regulators sweeping new powers to limit rate increases.
The vote by the Illinois General Assembly blocking a bill pushed by Gov. JB Pritzker (D) leaves in place the state’s permissive regulations that let insurers raise rates at will.
Illinois had become the latest test case in a nationwide debate over whether states should restrict rates to protect policyholders or let insurers raise premiums significantly as claims soar due in part to intensifying damage from severe weather.
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Climate change, inflation and other pressures have increased both the cost and scarcity of property insurance, creating crises in some states.
