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I'm not sure we're looking at the same industry. Overall, insurance company profit margins are in the single digits, usually low single digits - and in many segments, they're frequently not profitable at all. To take one example, 2024 was the first profitable year for homeowners insurance companies since 2019, and even then, the segment's entire profit margin was 0.3% (not 3% - 0.3%).

https://riskandinsurance.com/us-pc-insurance-industry-posts-...

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It's an accounting 101 thing to use all tricks in the book to reduce the reported profit, to avoid paying taxes on that profit.

Insurance companies vote with their feet. The practical reality is that if insurance companies are able to make money in a given state, they'll stay in that state. Insurance companies fleeing states like CA or FL in droves is a really good indication that the actual, hard reality on the ground is that they can't make money when the regulations are stacked against them. That's fine for insurance companies - they'll just go somewhere else - but it's really bad for the people who need insurance.

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