GOV. PRITZKER AND ILLINOIS LEGISLATIVE LEADERS PUSHING TO UPEND INSURANCE MARKET WITH SB 1486

The following information was released by the National Association of Mutual Insurance Companies (NAMIC):

NAMIC is disappointed by the Illinois General Assembly's decision to advance SB 1486. While transparency for consumers is a shared goal, this legislation risks creating unintended consequences that could increase compliance costs, add complexity, and ultimately raise prices for Illinois consumers.

Illinois currently benefits from a healthy, competitive insurance marketplace that offers consumers choice, innovation, and financial stability. Insurance pricing within that market is based on long established, scientifically accepted actuarial methods that rely on data, risk modeling, and statistical analysis to ensure rates are fair, accurate, and sufficient to pay claims.

SB 1486 moves Illinois toward a one size fits all regulatory approach that does not reflect how insurance products are priced, regulated, or delivered using these science based practices and in doing so, puts the strength and competitiveness of the state's insurance market at risk.

Mutual insurers operate under a customer owned model that prioritizes long term value, fairness, and clear communication with policyholders. We are concerned that the bill's broad provisions may create confusion, expose insurers to inconsistent enforcement, and divert resources away from innovation and customer service without improving consumer understanding.

NAMIC will continue working with policymakers to advocate for balanced, insurance specific solutions that protect consumers while preserving actuarially sound, science driven pricing and a competitive insurance marketplace in Illinois.