Dude what you don't get is that insurance companies like to overcharge on premiums and to not pay claims. Perhaps in an ideal world what you say is true, but this isn't your ideal world/model. More regulations create lots of opportunities. Climate change predicted fatter tail means excuses for higher premiums. Climate change = force majeure on old policies, like not pay as much, or cancellation?
Excessive hurricane insurance claims where I grew up had more to do with poor building codes, muckheads developing houses out to the tide lines, and inflation tripling the replacement costs.