I think you're spot-on in a scenario where insurance companies have deep enough pockets for any new floats they want to set up and had reduced regulatory requirements (with respect to things like EU Solvency II obligations)
I worked with a large company preparing for Solvency II. My impression was that it would generally increase regulatory capital requirements, not decrease.
Yeah sorry, comment written too hastily and had the inverse meaning I intended. I agree, Solvency II increases capital requirements. Edited to be "with respect to S2" rather than "such as S2".