>There's no reason- none- why insurance cannot be successfully administered by government.

In the case of property insurance (flood, fire or whatever), for me, it should be part of the property tax, increase it if necessary, but everyone paying property tax should be fully insured. Insurance companies get away with some crap, like you mention NO, too much damage so they do not cover it and in the end government end up paying (not sure if it was the case in NO, but I am sure in big catastrophes government always end up ponying up money) so why do we need an insurance company?