This is how the insurance industry has operated for ages. They can't charge higher rates due to race, so they find ways around it: "credit-based insurance score, geographic location, home ownership, and motor vehicle records" [1]
Some geographical regions have higher rates of accidents and crime, if that region correlates with a larger number of minority inhabitants that is not racial bias. As long as the insurance is measuring rates of claims per geographical areas and not rates of minorities I don’t see a problem with that.
Well I think that insurance companies are predatory parasites and that the government should introduce more regulations to prevent them from profiting off of poor people, even if doing so reduces their profit margins.
Good news, California now regulates insurance companies in the way you want, so much so that most of them have now stopped writing insurance in the state.
1: https://www.businesswire.com/news/home/20220310005380/en/NEW...