Some insurance regulators are floating the idea of nationally subsidized catastophe protection. Modelled after the post-911 terrorism coverage offered by the US such coverage would theoretically induce more insurers to enter the market.

If offered as a government to business function, like reinsurance, it could have some real positive benefits. However I am automatically skeptical. Expect massive fraud, lousy service, a huge ineffective, oppressive bureaucracy, preferential rate design, etc, etc, etc.