For one thing, the FAA has a charter to promote General Aviation in the USA, not just regulate it. They are also given the budget to do the job. For this reason, Stateside flying is cheaper than almost anywhere and pilots are a dime a dozen. This makes for a very different climate than one encounters in the UK, where the CAA are required to make a profit and there simply to regulate.
It has little to do with insurance companies and everything to do with over supply of pilots.
For those who complain about 200 hour guys getting jet jobs, just what do they think the armed forces have on the front lines? Why is it somehow okay for a 200 hour pilot to fly turboprops, but not jets. Anyone who's flown both knows the turboprop has a higher workload, so why is it somehow okay to put the low hour guy in the more demanding environment? Is it simply because you had to go that route and you're jealous someone else has found a different way?