We need some kind of insurance reform. Insurance works best when there is one extremely large pool of consumers to offset the risk of a catastrophic event in one small area of that pool. The risk pools keep getting smaller as private insurance companies stop offering high risk insurance in markets that suffer from floods, hurricanes, tornadoes, and wild fires. Several state governments have been forced to pick up the slack by offering a small pool of high risk (and therefore high cost) insurance to those residents.
I get it, private insurance companies want to make as much profit as possible and those markets are killing their profits. They should have the right to pull out of those markets if they want, but I would propose that if a private insurance companies should not be able to selectively offer different insurance in different risk markets.
So, for example, if State Farm wants the privilege of selling auto insurance to California's 39 million residents, they also have to offer home/fire insurance (nearly all private insurance companies are not writing new home insurance policies in California due to high risk of wild fires, but they do offer other types of insurance). In other words, it should be all or nothing if they want to participant in any geographic market.
If they still don't want to offer it after such a law, that's ok because then the government's insurance pool can pickup the lower risk insurance (car, home, life, umbrella) to help offset the cost of the higher risk fire insurance (in the California example). The same would be true in other states that have single vertical government pools for different natural disasters (Florida, Texas, Louisiana, Alabama).
I'm sure there are better ideas, but this is just one option that comes to mind.