It is really bad. Lots of rural folks are unable to find insurance companies who will provide fire insurance so they are having to fall back to the state FAIR program. A good friend has been cancelled 4 times and had to go on FAIR, and his annual premiums increased from $3K to $8K. On the face of it, the notion of the state having a say in rate increases seems reasonable, but like most propositions it was poorly written and is very one-sided favoring consumers.
The CA legislature is trying to come up with a structure to entice some of the companies that have stopped writing policies in CA to come back, but no legislator is willing to sponsor it for fear of political repercussions.