Scott Stantis editorial cartoon for Wed, July 16, 2025, on Gov. Pritzker and State Farm (Scott Stantis/For the Chicago Tribune).
By The Editorial Board | Chicago Tribune
The governor of Illinois and one of the state’s biggest employers are engaged in an unusually heated war of words.
Shortly after news dropped last week of State Farm’s eye-watering 27% average rate hike on Illinois homeowners insurance customers, Gov. JB Pritzker erupted, accusing the Bloomington-based insurance giant of pulling a fast one. “These increases are predicated on catastrophe numbers that are entirely inconsistent with the Illinois Department of Insurance’s own analysis — indicating that State Farm is shifting out-of-state costs onto the homeowners of this state,” Pritzker said in a statement. “Hard working Illinoisans should not be paying more to protect beach houses in Florida.”
In the insurance world, those are fighting words.
State Farm responded with its own statement saying Pritzker had his facts wrong, and that the insurer’s rate hike — as shocking as it was — reflected only its experience in Illinois, where hail and wind storms, combined with higher replacement costs, have made its homeowners business here deeply unprofitable. “Illinois families deserve an honest conversation about insurance economics rather than political rhetoric.”
So what we appear to have now are two powerful forces facing off, each effectively accusing the other of being a liar. Not ideal, to say the least.
We understand the governor’s frustration. The 27% increase, set to take effect Aug. 15, is the largest such one-time hike in memory in Illinois, and State Farm isn’t just any old provider. The largest insurer of homes and cars in the land, State Farm is particularly dominant in its home state. For years, it’s insured roughly 1 of every 3 Illinois homes.
So when State Farm raises annual premiums by hundreds of dollars in one fell swoop, that could well have a negative impact on the state’s economy. State Farm is that big of a player. Consumers already are struggling with inflation of all sorts. Insurance — like utility bills, which also are rising sharply this summer — isn’t an avoidable cost. When insurance costs rise this much, many consumers have to tighten other parts of their budgets, which hurts businesses whose products are more discretionary.
More here.