Thats looking like a better option for many industries. Unfortunately those industries have a lot of money to buy politicians and make sure its a failed option.

Private insurance never made sense. The goal is to have the biggest, and most diverse risk pool, so no one event sinks the entire hedge. That means monopoly, and if you have any sort of reasoning capacity, state-run monopoly.

When private firms say "oh, we'll only do business in a 'low-risk' area", they're basically asking the fates to pull something like the New Madrid earthquake on them. There is no substitute for diversified risk.

I'd also be unsurprised if a lot of modern "risk analysis" is redlining with extra steps.

We put together a public option, we’d see these shenanigans stop real quick

You have the California FAIR plan. Its much more expensive than any private offering because they don't have to follow the rules of private insurers in California. Insurance in California is heavily regulated, especially around premium increases. This is why the insurance companies are pulling out; not because the regulations per se, but the math of how much they can charge, versus how big the risk is, is just too high.

These companies are greedy af. I can assure you they want to be making money in a trillion dollar market. The point is that they can't.