Insurance companies are required to pay out all but 15% as it is, so really, that’s the most it could save, and since a new governing body to handle claims would have to exist, it would require at least 5% to pay staff, so that cuts it down to saving maybe 10 at best over an insurance company.
Right now the nation is supplementing states that have higher storm damage. People living at those rich coastal states that get hit by these storms are paying less than their risk and causing the rest of the nation to pay higher rates because the insurance companies aren’t allowed to charge places like Florida more.
In other words, if insurance went state to state, places like Oklahoma and Missouri would save money due to the lower risk, but places like Florida would have to pay out more than they currently are or the state would lose money in payouts.
So insurance companies wanting to charge Florida and California more isn’t really going to make the insurance companies more money a year. They’re still locked at having to pay out 85% of what they take in to their insured customers. It would actually mean that the insurance company wouldn’t have to inflate prices they charge to all the rest of the country in order to supplement the customer’s they have in the states in high damage areas. I’d be all for it, since I don’t live in a warm state with a beach. It’s not right that I don’t get a day trip to the ocean, but I have to pay the higher insurance rates for the people who do.