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So I don't get it, what did he say that was wrong?
I'm not sure if you're being sarcastic. They're extorting the insurance agency. They're basically saying that they're going to drop everyone's policies if the insurance regulator for the state doesn't allow them to raise the rates. They're also vastly overestimating how much they will have to pay out because their insurance will be paying State Farm. It's a mob deal?
"It would be a shame if we couldn't insure half your state."
Or Alternatively, those places keep going up in flames and aren't suitable for humans. Like a bunch of flood zones or the coasts. At a certain point it may not be reasonable to insure a place.