Insurance industry groups swiftly criticized a new campaign launched by Illinois Secretary of State Alexi Giannoulias that challenges how auto insurers assess risk.
The campaign targets pricing models that rely on data such as credit history, age, and digital behavior, rather than focusing solely on driving performance.
Giannoulias argues that rate setting should prioritize driving records, not financial or demographic indicators. His office said insurers use third-party sources—including social media and mobile app data—to assign higher premiums to certain policyholders (see US Auto Insurance Rates by States).
He added that pricing models penalize seniors and individuals with strong driving records but weak credit profiles, sometimes charging them more than motorists with DUIs and excellent credit.
Insurance companies need to implement a ratemaking process that’s fair and transparent. “The current system results in fewer Illinoisans being able to afford insurance and fewer opting to pay for it, making our roads less safe for everyone.
Illinois Secretary of State Alexi Giannoulias
Illinois-based studies cited by the secretary’s office point to a premium increase of 18% in 2024 and another 4% projected in 2025. Giannoulias warned that this trend is making auto insurance unaffordable for many, leading to lower coverage rates and increased risks on public roads.
To push for reform, the secretary of state’s office launched a dedicated website and plans to hold town hall meetings across Illinois. These sessions aim to collect first-hand accounts and feedback from policyholders who believe they’ve been unfairly charged.
AARP Illinois backed the initiative, noting that older drivers generally have strong safety records. Philippe Largent, the organization’s state director, said its 1.7mn members in Illinois deserve fair pricing that reflects their risk profiles.
In response, the Illinois Insurance Association and national trade groups defended current industry practices. They emphasized support for pricing transparency but rejected restrictions on the actuarial process.
Their joint statement said that using a broad range of objective risk indicators helps maintain a competitive market.
The industry also noted that Illinois law, like all U.S. states, already prohibits using race, income, religion, or ethnicity in premium calculations. Insurers argue that further constraints would undermine their ability to assess risk accurately.
