Illinois PIRG: State Farm's Influence Blocks Regulators' Probe
The Illinois Department of Insurance has filed a lawsuit against State Farm to compel the insurer to provide property insurance market data.
The regulator claims it needs this data to justify State Farm's recent rate increase, while the insurer argues it has already provided sufficient information.
Part of regulators doing their job is not just to take the insurers word for it, but to have a better understanding of their business practices and their business practices related to how they're dealing with extreme weather.
Abe Scarr, program director for energy and utilities at the Illinois Public Interest Research Group (PIRG), notes that the Illinois Department of Insurance lacks enforcement power compared to other states' regulators.
The lawsuit, filed on October 10, follows repeated requests by the state's insurance regulator for the necessary data.
Author's summary: State Farm's influence hinders regulators' probe.