Sen. Michael Hastings (D-Frankfort) believes Illinois should require insurance companies to get prior approval for significant rate hikes and make their methodology transparent.

SPRINGFIELD, Ill. (WAND) — An Illinois Senate Democrat is renewing his calls for insurance reform following State Farm's announcement of a 27% increase for homeowner insurance premiums.

Sen. Michael Hastings (D-Frankfort) told WAND News he is determined to pass a plan to help consumers as soon as possible.

Hastings believes Illinois should require insurance companies to get prior approval for significant rate hikes and make their methodology transparent. He also said the state should cap any rate increases at 15% per year or require extensive notice for families to plan for hikes.

"We had Allstate insurance raise their auto insurance premiums last year by approximately 14.2% and State Farm again this year 27.2%," Hastings said. "It's just unacceptable, and families across Illinois can't afford it."

Senate Bill 268 would ban insurers from passing the costs of out-of-state disasters like hurricanes and wildfires onto Illinois customers without proper justification. Yet, the University of Illinois Office of Risk Management and Insurance Research told WAND News in April that Illinois should examine 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," said Lynne McChristian. "That affects senior citizens. It affects older drivers. So, not knowing is not a money-saving issue." 

Hastings said Gov. JB Pritzker's recent support for rate reform underscores the urgency of this issue. He hopes to see lawmakers on both sides of the aisle cosponsor his plan over the coming months.

"We want to get a solution. We're very proud of our state, not only because the corporate headquarters of multiple insurance companies reside here and provide our residents great-paying jobs, but we also have to be cognizant of protecting our consumers," Hastings said. "I'm confident that my colleagues, myself and the executive branch of government will work together in order to find a solution."

Sen. Paul Faraci (D-Champaign) is one of six cosponsors for the Hastings legislation. The proposal could be discussed during the veto session in October. 

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