Illinois Governor Signed Insurance Rate Review Legislation
The new law grants state regulators authority to review and reject proposed insurance rate hikes.
Updated on Sept. 28, 2026 in Insurance
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Governor JB Pritzker signed legislation in August 2026 granting the Illinois Department of Insurance power to review and reject rate increases. Insurers must now justify premium changes with actuarial data before they can be implemented.
Why it matters
The measure addresses the rising cost of coverage for residents following a 68 percent increase in home insurance costs between 2020 and 2026. It ensures state oversight on price hikes, including those similar to a 27 percent rate increase filed by State Farm in 2024.
The average Illinois homeowners insurance premium reached approximately $3,559 in 2025. This follows a period where state regulators previously lacked prior-approval authority for rate changes.
The players
JB Pritzker
He is the Governor of Illinois who signed the legislation into law.
Illinois Department of Insurance
This state agency is responsible for reviewing and rejecting insurance rate increases.
State Farm
This insurance company filed for a 27 percent statewide rate increase in Illinois in 2024.
The details
Under the new law, insurers must provide 30 days notice for auto insurance rate hikes and 60 days for homeowners insurance. The legislation is designed to curtail excessive costs while requiring transparency through mandatory actuarial data submissions.
Timeline
2008: Illinois passed the Biometric Information Privacy Act.
2020-2026: Illinois home insurance costs rose 68 percent.
2024: BIPA class action filings peaked at 427.
August 2026: Governor Pritzker signed the rate review legislation.
July 1, 2027: The new insurance rate regulation law takes effect.
Market Dynamics
This legislation reflects a shift toward increased state-level oversight of the insurance sector, similar to the regulatory intervention seen with the Illinois Biometric Information Privacy Act. The change marks a move away from a market with no prior-approval authority for premiums.
Residents may see more transparent rate adjustments as insurers must now justify hikes with actuarial data. This could help stabilize premiums, which averaged $3,559 in 2025, by preventing excessive increases before they take effect.
The takeaway
The new law empowers state regulators to demand proof for premium increases, providing a check on the rising costs seen in recent years. Homeowners should track upcoming rate filings to understand how these new transparency requirements affect their own policies.
Further reading
For more on policy changes, visit Illinois Insurance.
Source note: This article includes information reported by Live Insurance News.
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