Illinois will be able to review, and order rebates on, homeowners and auto insurance rate increases after Governor JB Pritzker signed two bills into law, ending its place as one of only two states, with Wyoming, that let insurers set rates without state approval [1].
The homeowners measure, HB 4273, and the auto measure, SB 714, both take effect July 1, 2027. Each gives the Illinois Department of Insurance authority to review rates and order rebates when it finds them excessive or unfairly discriminatory. HB 4273 requires 60 days' notice before any homeowners premium increase above 10 percent, and SB 714 requires 30 days' notice on auto increases above the same threshold [1].
Pritzker framed the change as a disclosure requirement rather than a price cap. "It's not asking too much to say to insurance companies, if you're telling your customers that rate hikes are necessary, you should be able to prove why," he said [1].
Industry warnings that the review would push rates up drew a direct answer from the governor. "It's silly to suggest that this is going to raise rates across the board," Pritzker said. "What's raising rates are when insurance companies are simply putting out their bills that people can't afford and that don't have any relationship to what's actually happening on the ground" [1].
The state's own regulator was careful about what the law can and cannot do. Ann Gillespie, the state's Insurance Department director, said the bills stop short of controlling premiums. "While no state legislation can fully eliminate these impacts to insurance premiums, these bills today hold insurance companies accountable for addressing their cost increases by requiring rates to reflect Illinois-specific losses and considerations," she said [1].
