"too many insurance companies . . .no one single company can spread the risk throughout their Florida policyholders"
Nah, they "re-insure" in large conglomorations --- each buying chunks of other company's risks.
Lloyds of London is an example of this.
Re-insurance is a huge business.
Funny you should mention LOL. They are now one of the insurance companies of last resort here in Florida.........