Illinois Attorney General Kwame Raoul has sued State Farm, alleging the insurer refused to provide ZIP code–level data sought in a late‑2024 regulatory probe of its homeowners business. State Farm denies wrongdoing and says the case does not concern Illinois customers. Regulators argue the data is needed to assess whether homeowners are being charged fairly as climate-driven disasters push insurers from high‑risk areas; MarketWatch reports premiums rose ~20% from 2022–2024 with another 8% expected. The suit seeks to compel disclosure so regulators can evaluate pricing and fairness.
Illinois Sues State Farm, Accusing Insurer of 'Obstruction' in Homeowners Insurance Probe
Illinois Attorney General Kwame Raoul has sued State Farm, alleging the insurer refused to provide ZIP code–level data sought in a late‑2024 regulatory probe of its homeowners business. State Farm denies wrongdoing and says the case does not concern Illinois customers. Regulators argue the data is needed to assess whether homeowners are being charged fairly as climate-driven disasters push insurers from high‑risk areas; MarketWatch reports premiums rose ~20% from 2022–2024 with another 8% expected. The suit seeks to compel disclosure so regulators can evaluate pricing and fairness.
01:25 AM, 11/16/2025Economy
Illinois Attorney General sues State Farm over alleged refusal to provide data
Illinois Attorney General Kwame Raoul has filed a lawsuit against State Farm, alleging the insurer refused to cooperate with a regulatory examination of its homeowners insurance operations that began in late 2024. The Illinois Department of Insurance asked for detailed, ZIP code–level, nationwide data on State Farm's policies — including premiums, coverage limits and claims — and, according to the complaint, the company did not provide the requested information.
"State Farm's obstruction does not just violate the law," Raoul said. "It prevents the Department of Insurance from obtaining information to help make sure all Illinois homeowners are being treated fairly."
State Farm, headquartered in Bloomington, Illinois, denied any wrongdoing. A company spokesperson said the lawsuit "has nothing to do with Illinois customers or the cost of their insurance" and asserted the insurer "remains committed to collaborating with the Illinois Department of Insurance to benefit Illinois customers."
Why regulators want ZIP code–level data
Regulators say ZIP code–level information is essential to identify where homeowners may be paying unfair rates or where coverage gaps exist, particularly as climate-driven disasters reshape regional risk profiles. MarketWatch figures cited in reporting show home insurance premiums rose roughly 20% between 2022 and 2024, with another estimated 8% increase expected this year.
Rising threats from wildfires, floods and severe storms have prompted many insurers to limit coverage or withdraw from parts of high-risk states such as California and Florida. Insurers are increasingly reassessing the costs of underwriting in areas facing amplified climate risk, which can leave homeowners with fewer private options and greater reliance on state-backed programs.
What this means for homeowners
Raoul's lawsuit seeks a precedent requiring companies headquartered in Illinois to produce the granular data regulators need to evaluate pricing fairness. For homeowners, experts recommend:
- Reviewing policy coverage and limits at least annually.
- Exploring state insurance programs or disaster assistance if private insurers retreat from your area.
- Taking mitigation steps — for example, installing fire-resistant roofing or improving flood protections — which can lower a property's risk profile and may improve eligibility or pricing.
The case underscores growing tensions between state regulators and major insurers as climate-driven losses put pressure on the insurance market. The lawsuit is ongoing, and both regulators and State Farm will likely continue to litigate over access to the requested data and the broader implications for rate transparency.