This would all be very nice if it were to happen; but the system is set-up against it. Things you've mentioned such as price fixing will continue to prevent free market principles from working. If we were to reform the system to something that would allow competition to actually occur I would be in favor of it, but don't believe the politicians saying this by itself is a solution.
Hopefully we can agree that this could address pricing issues; but it would need reform before coming anywhere near achieving these goals.
And yeah Adam Smith did talk about insurance
"The Value of risk, either from fire, or from loss by sea, or by capture, though it cannot, perhaps, be calculated very exactly, admits, however, of such a gross estimation as renders it, in some degree, reducible to strict rule and method."
In other parts of his book he mentioned many people going without insurance when they felt the prices were inconsistent with the risk. Which with the new law isn't exactly possible...