- Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, the state’s largest home insurer, demanding access to nationwide data on its policies.
- The legal action follows a controversial 27.2% average increase in home insurance rates for Illinois residents, which State Farm announced in July.
- State Farm rebukes the lawsuit, calling it “without merit” and asserting that it has not violated any laws.
- The lawsuit highlights Illinois’s unique position as the only state without the authority to reject insurance rates for being excessive or unfairly discriminatory.
State Takes on Insurance Giant
In a significant legal escalation, Illinois Attorney General Kwame Raoul has sued Bloomington-based State Farm. The lawsuit, filed on behalf of the Illinois Department of Insurance (IDOI), demands that the company turn over comprehensive, zip-code level data for all the homeowners insurance policies it issues across the United States.
This move comes as a direct response to growing concerns over insurance affordability after State Farm announced a staggering 27.2% average rate hike for Illinois homeowners in July. State officials argue that access to this national data is essential to understand and address what they term the “affordability crisis in homeowners insurance” affecting residents not just in Illinois, but nationwide.
The Heart of the Dispute: Data and Transparency
According to the state’s complaint, a thorough assessment of the insurance market requires a deep dive into State Farm’s condition, practices, and enterprise risks—information the state believes the insurer is legally obligated to provide. The lawsuit alleges that State Farm has “flouted its legal obligations” by refusing to comply with an IDOI investigation that began in November 2024.
The rate increases announced earlier this year were met with sharp criticism. At the time, State Farm justified the hike by citing “unsustainable” losses driven by rising home replacement costs and an increase in severe weather events. However, Gov. JB Pritzker labeled the increases “unfair and arbitrary,” stating the company’s claims didn’t align with state data.
State Farm Fires Back
State Farm has firmly denied any wrongdoing. In a statement, company spokesperson Gina Morss-Fischer declared the lawsuit is “without merit and has nothing to do with Illinois customers or the cost of their insurance.”
The company’s reasons for withholding the data, as cited in the complaint, are twofold. First, State Farm argues it cannot be compelled to produce data about policies insuring properties outside of Illinois. Second, it raised concerns that the IDOI might violate confidentiality protections if the data were produced.
A Unique Regulatory Battleground
The legal battle is intensified by Illinois’s distinct insurance laws. It is the only state in the country that does not legally prohibit insurance rates from being “inadequate, excessive or unfairly discriminatory.” This means the IDOI lacks the authority to reject rate filings on those grounds, giving it limited power to control sharp increases directly.
This lawsuit represents a different tactic by the state to hold the insurance behemoth accountable and gain the insight it claims is necessary to protect consumers from what Gov. Pritzker called “severe and unnecessary rate hikes.” The outcome of this case could set a new precedent for insurance regulation and corporate transparency in Illinois.
Image Referance: https://www.sj-r.com/story/news/state/2025/10/17/illinois-sues-state-farm-over-homeowners-insurance-policies/86695566007/