Availability & Choice
When more insurers compete for business, consumers win.
197 IL-domiciled P/C insurers – More competitors = more consumer choice
- Illinois has one of the largest home-base of insurers in the country: 197 Illinois-domiciled property/casualty carriers (2022, #2 nationally), so consumers and businesses have options.
- Homeowners insurance costs less here than the U.S. average ($1,343 vs. $1569 in 2022), a sign of healthy competition.
- Independent analysts rank Illinois #9 (A-) for insurance regulation (2024), highlighting strong consumer protections without red tape that chases insurers away.
- Experts warn that price caps on risk-based pricing often backfire and could shrink choices and availability.
Bottom line: Illinois’ competitive framework is working. Preserving it keeps carriers in the market, expands consumer choice, and helps hold down costs.
Recovery & Stability
Insurance dollars help communities bounce back.
Avg homeowners premium: $1,343 – Below national average
- In tough weather years, homeowners insurers in Illinois pay out more than they take in. In 2023, they paid about $1.30 in claims and expenses for every $1 in premium, a reminder that robust reserves and investment earnings are what keep claims getting paid.
- Illinois spends less than the U.S. average on defense and claim-handling costs in both homeowners and personal auto over the last decade, which means more of each premium dollar goes to claims.
- NAIC data show insurers’ results swing year-to-year, which is why policy that supports solvency and competition matters for fast, full claim payments.
Bottom line: A financially sound, competitive market is what enables fast, full claims payments when storms hit. Without it, recovery slows.
Faster rebuilds start with a healthy market.
Illinois-Based Investment
A home-field industry driving jobs and local investment.
159,000+ Illinois jobs – A top private-sector employer
$47B in Illinois munis held by insurers – Financing schools, roads, hospitals
- 159,000+ Illinoisans work directly in insurance, one of the state’s largest private-sector employers.
- The industry contributed ~4.43% of Illinois GDP (2021), more than hospitals, agriculture, construction, or food services.
- Illinois insurers invest for the long term: $499B in bonds, including $47B in municipal bonds that finance schools, roads, and hospitals.
- One in every five U.S. property/casualty premium dollars is written by an Illinois-domiciled insurer, showing national leadership with local roots.
Bottom line: When Illinois’ insurance market stays strong, it keeps high-skill jobs, attracts capital, and finances critical community projects.
Policy choices determine affordability and availability.