i dont think its really right to blame the government for this. the main reason insurance costs so much is because joe public is claiming a hell of a lot more for every little scrape they have, whiplash and minor injuries etc. personally i have never made such a claim but i know a lot of people who have, and we only have ourselves to blame and a nation for our insurance costs going up and up.
i agree its not an ideal situation and at 26 i pay 1500 a year myself but i dont think the government can do much about it. i would say the government has actually helped me out starting a business at 24 very well- i got a business loan from the council at an extremely low interest rate to buy my wfp setup, and i got a free website as well. cant really complain