So, if I understand correctly: private insurers are pulling away from coastal markets. People are therefore getting insurance from last-resort insurers. Last-resort insurers don’t have enough money to deal with a catastrophe. If a catastrophe ensues, we (meaning either ‘those of us who purchase insurance’ or ‘the taxpayers’) will collectively be on the hook. That certainly sounds like something that the same ‘we’ should be thinking about now, before catastrophe strikes.
What the starry-eyed libertarians always forget to account for (or perhaps they assume we won’t notice) is the number of people who will make bets they won’t have to cover: so long as government get off people’s backs, they’re all for it.