The California Department of Insurance regulates the insurance rates, down to how much they can raise them each year. Over the last decade the real risk of these fires has become better known to insurance companies and they've been screaming to be allowed to raise rates faster. Some have even exited the state completely (to new sign ups).

CalFAIR is the state insurer of last resort but last I checked it's not subsidized. There were talks of needing a possible bailout last year, and it's going to intensify now, but it hasn't happened yet.

CalFAIR is subsidized in the sense that insurance companies are forced to pay into it. Insurers of course pass this cost on to their customers. Combined with price controls on insurance this is just taxation with extra steps.

The California FAIR Plan will almost certainly be bankrupted by this event, and then will almost certainly be bailed out by the state... which will be a direct subsidy.