Sebi Banescu (banescusebi)

Hey, I would like add my 2 cents to this conversation. Sherlock doesn't use their own funds for insurance, they use funds from Nexus Mutual, which is nor really insurance, because it's unregulated. AFAIK the only auditing company using their own funds to provide regulated insurance is Quantstamp.

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Great question! Are you strictly referring to premiums and claims being paid on-chain or were you also referring to parametric insurance where the claims are paid out automatically based on an oracle?

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It exists. Our friends at Etherisc have been doing it for certain types of insurance for a long time now. Examples where this works well are crop insurance and travel insurance. However, when it comes to web3 hack insurance there are some things that make parametric insurance more difficult.

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One important example is the fact that funds are sometimes fully or partially returned by the hacker in exchange for a bounty or due to the fact that they hacker is doxxed by someone like Hypernative or Chainalysis to the authorities after a forensic investigation.

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