00:00It's Benzinga, bringing Wall Street to Main Street.
00:03America is facing a home and auto insurance cost crisis,
00:06as states consider price controls to rein in soaring premiums, according to The Wall Street Journal.
00:12Insurance costs have surged faster than inflation, with average increases of 50% for home
00:17and 42% for auto policies since 2020, according to S&P Global Market Intelligence.
00:24Illinois-governed J.B. Pritzker called a 27% home insurance rate hike by State Farm unfair and arbitrary,
00:31backing of veto power over future increases.
00:34State Farm said it has lost money on Illinois home insurance in 13 of the past 15 years,
00:39arguing that political criticism overlooks the financial realities.
00:43Analysts warn that rate caps could drive insurers out of markets, as seen in California,
00:48where years of limits led to a pullback by major carriers.
00:51Regulators there have now approved double-digit rate hikes to lure insurers back.
00:56For all things money, visit Benzinga.com.
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