SPRINGFIELD, Ill. (WAND) — State lawmakers could pass multiple insurance reform proposals before session ends next month, but researchers believe Illinois should be cautious about overregulation.

Experts from the University of Illinois Gies College of Business argue the insurance industry is a major economic driver for the state and more mandates could destabilize the market.

“We’re putting patients before profits,” Speaker Emanuel “Chris” Welch said July 10. “We’re putting patients’ healthcare before large insurance companies. This is what it should be about.”

The Healthcare Protection Act was one of many plans passed and signed into law last year that helped crack down on bad actors in the insurance industry. While many argue reforms for health, auto, and home insurance help the state’s most vulnerable, industry leaders note additional mandates for the industry are complicating Illinois’ competitive insurance marketplace.

Lynne McChristian runs the UIUC Office of Risk Management & Insurance Research. McChristian told WAND News Monday that insurers employ nearly 160,000 people across the state and provide benefits for consumers when they face life challenges.

“With insurance, you pay it forward for what you think might happen in the year ahead of the six months ahead,” McChristian said. “Planning for that takes a lot of variables, a lot of planning, and also a great deal of caution.”

Senators could discuss a bill this week to require insurance companies seek approval from the state for any homeowner or auto insurance rate increases, with a cap of 15% per year unless justified. Yet, Senate Bill 268 would also ban insurers from using credit scores or occupation to set premiums.

McChristian said Illinois should look at the unintended consequences states like California and Washington faced after implementing similar policies.

“60% of people in Washington saw an increase in their costs in 2021,” McChristian said. “That affects senior citizens. It affects older drivers. So, not knowing is not a money saving issue.”

Senators and representatives passed multiple insurance proposals out of their respective chambers earlier this month. Lawmakers will be able to review all of the insurance reforms before session adjourns May 31.

“The cost of repairs is increasing, and the frequency of natural disasters and auto accidents is going up,” McChristian said. “That’s reflected in what we pay for insurance. Having a new bill to control that cost doesn’t control the cost drivers.”

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