Illinois PIRG: State Farm's Influence Blocks Regulators' Probe
The Illinois Department of Insurance has filed a lawsuit against State Farm to obtain property insurance market data.
The regulator claims it lacks the necessary data to justify State Farm's recent rate increase, while the insurer asserts it has already provided the required 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.
Author's summary: State Farm's influence hinders regulators' investigation.