I challenge his thesis as an incomplete analysis and posit that wokeness is clearly  a part of the problem.

I began practicing law in the 80s. Since then I've litigated insurance related issues all over the country, including my share in California. This  situation is going to hit hard nationally - hell, maybe even internationally.  The ultimate consequences will be staggering.

Insurance companies can't afford the risk of bad governing and poor planning. If government chooses to focus on things like DEI, cultural competency, and LGBTQ hires -  as opposed to maintaining a razor sharp emphasis on things like infrastructure, including reservoir systems, water flow, fully staffed and well trained manpower  fire houses, pumps, etc. (you can't focus on both) - who bears the risk? Everyone, including insurance companies. Insurers can hardly afford the inflated costly rebuild materials in California anyway, but moreso it's the excessive regulations that compound the cost of a rebuild AFTER a loss.  No sane enterprise, insurance related or otherwise, wants to be in a forced marriage with  low level incompetent bureaucrats manning the desks of  a local municipal codes department, FFS.
Working through the maze of regulatory bureaucracies that is California comes at incomprehensible costs to people who simply want to put up a building. 

Not only that, California regulations aggressively cap premiums and require approval of all rate hikes and in some situations may be required to participate in pooled payouts for disasters that the government-run home insurance program (FAIR) can’t cover.

Let's go back a few years to the destruction caused by BLM during the George Floyd riots. Few  people understand the structure of Insurance reserves. Even fewer people care.  I know of no better reminder than the BLM riots of just how massive losses result in premium increases and coverage reductions, which leave everyone unhappy. Meanwhile we all continuing to pay for the Democrats' stupidity in encouraging those riots.  (Never forget that Kamala Harris blessed rioters and promised to pay their bail. See below.)
To illustrate the residual destructive effects of BLM, my insurance premiums have more than doubled since 2020. I'm 70 this year. Damn near perfect driving record. No catastrophic losses. No claims. Same with my property loss coverage and my PLC. No serious claims. None. Yet every premium  has doubled. So has yours - and everyone else's. There's a reason for that. Billions of dollars were torched during the Riots. Who  paid those claims?  
But no one says the quiet part out loud. (Well, I do because I don't give a fuck anymore. I despise what the Democrats, BLM, and the George Floyd worshipers have done.)  I also happen to know some of these things because I have 5 different decades worth of contacts in the industry.

So buckle up. This is going to cost you.
The incompetence of the DEI hires and leftist elected officials is going to result in losses to us all. And yet somehow, through all this, I expect the Democrats to continue with their shit-for-brains level of insanity. California will elect more blue politicians. They will blame everyone but themselves. The cycle will continue.  That's what stupid people do. How do I know? Because I was one of them for 48 years until I walked away during the BLM riots.
Fuck the left. Forever.

As Ayn Rand  said in Atlas Shrugged:

"When you see that in order to produce, you need to obtain permission from people who produce nothing - when you see that money is flowing to those who deal not in goods but in favors - when you see politicians get richer by graft and by pull rather than by work and your  laws don’t protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed."