But companies have competitors. If one insurance company requires an unnecessarily burdensome design (or charges unreasonable premiums without it) while another allows a more efficient design which is equally safe, customers will prefer the latter and the former will adapt or lose business.

If the government requires an unnecessarily burdensome design, you're screwed.

> squander and choke new technologies and scenarios, also doing so on an economic model.

If they do so then said technologies were not real opportunities. If they're opportunities then competitors will generate more value and/or less cost.