No it isn’t. It’s just unprofitable which means it can be fixed with higher rates.

Sure, but state governments (in the US) also set what prices are allowed (disclaimer: I don't work in the industry but have friends that do so I might misunderstand). And that means that if the state says "you can only charge X for insurance", and it's still unprofitable, those customers are effectively uninsurable.

There are to components, breakeven price for profitability and the price that an or will be paid.

If it costs 10 million dollars to replace a house, the insurance will be out reach for most homeowners.