The fact that major insurers are underwriting crypto assets isn’t that surprising from a business perspective but philosophically ironic. It does show that big finance is moving into cryptocurrency as only deep pockets with other people’s money at risk can justify the cost.  It also enables a possible future calamity.  If a feedback loop begins of crypto policies being easy money for insurers and overinflated assets on the books of financial institutions during a bubble phase for cryptocurrency shady outfits will enter the game.  Eventually the losses on overpriced crypto assets could be incredible.  A better insurance system would be one based on blockchain crypto itself.  A coin could be created that represents insurance (possibly a pool of various cryptocurrencies).  As insurance the holder of the coins would pay a maintenance fee that allows the pool to grow representing a reserve for claims payout if the coin holder encounters a loss.  The team/community/technology of this insurance coin would earn coins for their work tracing losses and recovering the stolen/lost crypto from claims as well as from general maintance work.

Insurance Giants See ‘Big Opportunity’ in Cryptocurrency Storage Coverage - CCN via BTCnews on iOS 
https://www.ccn.com/insurance-giants-see-big-opportunity-in-cryptocurrency-storage-coverage