Just capturing this prediction for the future…
As climate change leads to more frequent and powerful weather events—at the moment I’m thinking about Hawaii’s $1B in flood damage—there will come a point where insurance companies, despite having culled policies and reinforced their re-insurance, will have to stop covering entire geographic areas that are otherwise commercially active and important, e.g. Hawaii.
The government will step in to help somehow, but that won’t be sustainable given the scale and frequency of losses. Unless politicians somehow hoodwink the vast majority into paying for a minority that insists on living and working in disaster-prone areas. New Orleans and parts of California will be the test cases, and eventually Miami etc.