The biggest problem in the space is how do you differ bitcoin stolen and lost ?
Long time lurker.. Wouldnt insurance be fairly trivial for bitcoin (for a "savings account", not an account like a "checking account")?
I create an insurance company.
I will insure your bitcoin balance for a specific wallet.
This wallet is 2/3 multisig where I control one private key, you control one.
Insurance stipulates, as long as you follow the procedure (I verify a transaction is legitimate through my own means, could be tedious like 2fa + a phone call to you) then the balance is insured.
If a transaction goes through using this process, the transaction was legitimate regardless of what you say (the transaction that goes through via this method is not insured)
So basically, it would be impossible to "jive" this system.
edit: to clarify, we agree, both you and I, ahead of time "Ok, I will insure your 100,000 BTC balance as long as we both can agree on a process where we both feel assured that a proper transaction has taken place. Number one, no more than 1 transaction can occur per day. An email will be sent to you after every transaction. An SMS will be sent on any transaction over 10 BTC. Under 1 BTC requires 2fa. Anything over 1 btc and it requires 2fa plus I will call you and you answer the secret question. etc.. etc..."
Although it sounds "heavy", in reality, it is fairly trivial, and not only guarantees your money could never be stolen (moreso than a bank) but I can even give you interest on your "savings" since this process is similar to what we perceive as a savings account at a bank. Interest would allow for leveraging a small part of your balance which is a whole new process, but again, trivialized at the user level.
