Fires are incredibly expensive, which makes everyone buy fire insurance and incentivizes fire insurances to push fire safety on their customers.
In contrast, most data breaches are very cheap. In most industries the market doesn't seem to punish breaches at all, so there's only the unquantifyable cost of that data benefiting your competitors.
If there was a multi-million-dollar fine on data breaches regardless of fault and countermeasures, we would get exactly what you describe: the market working to reduce risk and average insurance payouts, making everyone's life better in the process.
In contrast, most data breaches are very cheap. In most industries the market doesn't seem to punish breaches at all, so there's only the unquantifyable cost of that data benefiting your competitors.
If there was a multi-million-dollar fine on data breaches regardless of fault and countermeasures, we would get exactly what you describe: the market working to reduce risk and average insurance payouts, making everyone's life better in the process.