Or an insurance company that went bankrupt?
Insurance companies are already highly regulated (especially in CA). There are regulations around how much money has to be held in reserves to pay claims. There are regulations around what investments can hold reserves in.
Hell in CA, there are regulations around how premiums can actually increase and a mechanism for returning “excess premiums” back to policy holders.
In fact those regulations are one of the reasons insurers are leaving CA. They can’t increase premiums sufficiently to cover risk.
You can read all about them: https://www.insurance.ca.gov/01-consumers/130-laws-regs-hear...
Yes. There were 6 insurance companies that went bankrupt in Florida in 2022. I am surprised you didn't know insurance companies go bankrupt all the time due to mismanagement.
https://news.climate.columbia.edu/2022/11/03/with-climate-im...
Insurance should not be used as a profit source. It is antithetical to the purpose of insurance.
Insurance is an industry with great cashflow. They should be able to keep any profits they make off of investing the premiums, but not the premiums themselves. The incentives just do not line up, they siphon off the money and scream about over regulation before they need to get bailed out.