Should states keep regulating insurance?

I know how it came about that the states regulate insurance. But- why should they?

States are not good regulators.

California is one good example. Regulators refused to let insurers raise their rates for fire insurance, while the state banned controlled burns and also stopped the clearing of brush. So State Farm pulled out, canceling a bunch of policies recently- just before this fire. Lucky for State Farm, since this fire may involve hundreds of billions of dollars in losses.

It seems there are two big problems. One, the California kind of problem- regulators try to choke the companies to the point they want to exit the market.

The other problem, harder to see, is-- the regulators who are too cozy with the insurers, and go along with whatever the insurers want, hosing the public.

Which leads me back to- why is it such a great idea to have state officials to regulate insurance companies? What would a better system be. Just go totally free market, or minimal regulation on prices?

Federal regulation is another option, but not a very attractive one in my opinion.