Government competition with private business is only one step away from government takeover of private business.
We lost our homeowners ins. in Florida at the end of 2006. It was with MetLife and they were dumping all of their homeowners policies in the area. We had this policy since 1985 and never made a claim.
We tried to get other private insurance, but private homeowner’s policies were not available. Citizens (the state run policy) was much more expensive than we were paying privately, and most people did not want the government alternative. There wasn’t any choice.
In retrospect, I am glad that the state stepped in and issued policies. I don’t think it was a question of SF being driven out of the market. I think private insurance wanted out of the market, and the state had to step in to prevent an economic disaster.