Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, the largest property and auto insurance provider in the state, accusing the company of refusing to comply with an investigation into its homeowners insurance business.
What’s happening?
According to Raoul, State Farm has failed to provide critical data requested by the Illinois Department of Insurance, which launched a regulatory examination in late 2024 amid rising concerns about skyrocketing premiums.
As reported by CBS News, the department is seeking ZIP code-level nationwide data on the company’s policies, including premiums, coverage limits, and claims.
“State Farm’s obstruction does not just violate the law,” Raoul said. “It prevents the Department of Insurance from obtaining information to help make sure all Illinois homeowners are being treated fairly.”
State Farm, based in Bloomington, Illinois, denied wrongdoing. A company spokesperson said the lawsuit “has nothing to do with Illinois customers or the cost of their insurance,” adding that the insurer “remains committed to collaborating with the Illinois Department of Insurance to benefit Illinois customers.”
Why does this insurance data matter?
The lawsuit highlights growing tensions between regulators and insurers as climate-fueled disasters drive up home insurance costs across the country.
According to MarketWatch, home insurance premiums jumped 20% between 2022 and 2024, with another 8% increase expected this year.
Rising risks from wildfires, floods, and storms have led major insurers to scale back or withdraw entirely from high-risk areas like California and Florida, leaving homeowners scrambling for coverage.
As hotter, drier conditions intensify across the western U.S., insurance companies are reassessing entire regions. Without adequate coverage, homeowners can’t rebuild after disasters, and communities risk economic collapse.
What’s being done about these rate hikes?
State regulators across the country are pushing for transparency and accountability in the insurance industry.
In Illinois, Raoul’s lawsuit aims to set a precedent by requiring companies headquartered in the state to share key data to evaluate whether homeowners are being charged fairly.
Learning about the critical climate issues that impact insurance rates can help ensure you’re well-informed and that you can pass that knowledge to friends and family living in high-risk areas.
For homeowners, experts recommend reviewing policy coverage annually and exploring state insurance programs or disaster assistance options if private insurers pull out.
You can also take steps to reduce your home’s risk, from installing fire-resistant roofing to updating flood barriers, which can help lower premiums or improve eligibility for coverage.
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.