What? Modern insurance companies don't have access to the money printer. And back in the day, pooled risk programs like "mutual aid societies" in the early 20th century, as well as I'm sure plenty of other examples from antiquity were able to successfully operate something that was effectively "insurance-like" in the sense of maintaining a pool of funds and paying out for (low probability) adverse events. There's no reason why the same thing wouldn't work for a crypto-based system...