Comment by selectodude

They exit markets due to regulations banning them from charging the true cost of risk. Large insurance companies don’t just go broke. They have re-insurance that caps their losses. It’s becoming far more difficult to get reinsurance and the premium caps make reinsurance unaffordable for the insurance company so they leave. The business model is managing the money - they don’t much care about the claim losses over the long term and taking 1 percent of rising premiums to be a manager is a solid business model.