As always, it is politically expedient to attempt to control prices, and usually wins votes from people who are interested in only short term results or do not understand how markets work.
Adjusting supply and demand, however, inflicts a lot more pain, so it ends up being a last resort, if even that.
Indeed, and they insist on doing so in the most fine-grained, bureaucratic way imaginable:
> Established in October 2022 and touted as a first of its kind, the state program requires insurance providers to discount policies for property owners who mitigate wildfire threats by installing fire-rated roofs, enclosing eaves and creating ember-resistant zones. Insurance companies have 180 days to submit a wildfire risk assessment or score, which the state can appeal.
Adjusting supply and demand, however, inflicts a lot more pain, so it ends up being a last resort, if even that.