Not really. It does when it comes to stuff like code. But none of that address the larger and fancier homes than if they were not insured. Similarly, if other people are buying much more expensive cars, your liability insurance will increase even if your risk stays the same - the likelihood of occurrence is the same but the cost per occurrence is higher.
My point being, yes insurance obviously decreases risk for owners, but since insurance companies are the ones inheriting that financial risk, they also inherit the incentive to ensure that things are being done the right way.