I think they are using Insurance as a predictive indicator of how terrible things are. So you are largely agreeing.
IE:
1. insurance spreads a hurt across a society, using money as an instrument.
2. If insurance doesn't work anymore then the hurt is too large for society!
This linking of 1 and 2 may not be entirely true due to insurance not necessarily being a perfectly efficient "spreader" across society. But I think in practical terms it is close enough.
The linking doesn’t need to be perfect to have real-world consequences: as the article explains, dues to increasing heavy weather events, home owner insurance is harder or even impossible to obtain. Without HOI, you won’t get a mortgage, because that would mean the bank partially enters into that risk. No mortgage means a lot of people cannnot afford to own a house or flat.
IE:
1. insurance spreads a hurt across a society, using money as an instrument.
2. If insurance doesn't work anymore then the hurt is too large for society!
This linking of 1 and 2 may not be entirely true due to insurance not necessarily being a perfectly efficient "spreader" across society. But I think in practical terms it is close enough.