Traditional Insurance offerings are offered on a “guaranteed cost” basis, meaning the premium (rate based on exposure) is fixed for the policy term, regardless of the number or amount of claims that occur during the term. Although this model has made insurance available to billions of individuals and organizations worldwide, it has also created limitations for risk areas where insurers lack data, expertise or regulatory support. Due to this limitation, industries such as DeFi, have been left exposed, which ultimately affects the public.
