Government standard insurance

Having a more informed public means the can make better decisions to improve their lives, on most things governments wants to make that information easily accessible to the consumer  

An informed consumer can make better purchasing decisions, when the product is difficult to understand consumers will make worse decisions overall.
Often consumers will accept the terms and conditions not understanding what is actually covered and what loopholes are written into the documents for the insurance company to get out of paying out.
In it was an informed market we would assume insurance companies giving more comprehensive cover but if individuals with no legal training  are the main consumer this may not likely happen.

An ill informed consumer may not understand the legal documentation, the implications aspects of the document have, may not understand the legal jargon, may not even know what questions to ask to understand if this insurance even good.

In the UK it's easier to know what cover you can get on the NHS as it will be the same for everyone, most people will know what type of treatments are not covered under the NHS, they don't have unknown loop holes.
With medical health insurance you have to trust a broker/yourself/etc that they have asked the right questions are you are covered when you need it. 

Government back insurance standards would build a base line that insurance companies could say this policy applies to, so as a consumer you could more easily find information what does it cover and as it has been tested with a large number of examples you could see potential pitfalls that government could decide to amend the law at a later date if they wish.



force majeure
furlow 
NSH and health insurance 
A similar example exists ATOL