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> The truth is insurance agencies always want to find a reason to increase your premiums, because the law says you can't just increase the premiums for no reason.

How does this work? Are you saying all the insurance companies share data and collude to set your rate? Or they just hope you don't price shop every year or two and jump to an offering that is under the legal limit (whatever that is)? My state has over 50 auto insurance companies, so I don't see why they would have to resort to tricks like that to increase your rate in an unfair way.

These same companies ruthlessly compete on rates in the consumer marketplace

How does that work in practice? Do insurers have to share their models with the regulator?

Yes, models have to be shared with regulators and the regulators have to be convinced that the premiums insurers wish to charge are actuarially justified (supported by the data).