Instead you might a bunch of people with zero actuarial experience gambling on policies. I agree, the concept is interesting, no regulation makes everything a crapshoot.
Doing it with a smart contract is as feasible as dating a smart contract.
You can only really “insure” against globally agreed on data, for example the price of wheat. That is an options/futures market not insurance though.
There's no reason this couldn't be expanded for other use cases, including home, car, etc. It really isn't limited to just smart contract data as you suggested.
Well, it’s quite telling that the majority of big crypto hacks are uninsured. And they like to play tricks just like normal insurance companies (1). And the CEO got hacked like any random person would’ve (2).
(1) https://thedefiant.io/badgerdao-hack-insurance-payout/
(2) https://www.coindesk.com/markets/2020/12/14/ceo-of-defi-insu...
That's just a traditional insurance company.
https://protos.com/tether-papers-crypto-stablecoin-usdt-inve...
If only you knew...