One clarification 1st: I don’t refer to health insurance in this whole exchange.
That said, imagine all losses from a mega-hurricane in Florida or the mega-earthquake in California or both together are claimed, leading to the gov having to raise taxes nationwide to cover the gaps. Sadly I doubt the people in other states will agree to that, even if it could be them on the line next time.
What happens with insurance for companies? Also in government control?