They did so for the investments into pirate@40
Most of those "insurances" turned out to be a scam. The ones that did pay out paid far less than the difference in interest was worth. IOW, it didnt make any sense to buy that insurance, you would have been far better off just investing proportionally less in to pirate, and calling the coins you did not invest your "insurance". If you want that kind of insurance, I can give it to you, but if you do the math you will realize how stupid you would be.