No, insurance is hundreds of years older than fiat currency. E.G Lloyds of London started in 1688 and the pound was gold backed at the time. Britain didn't leave the gold standard until 1914.

Did they pay claimants in gold or paper?

No

You wrong/retarded.. maybe both

insurance is a risk pool for a homogeneous group turning unpredictable individual losses to calculated average losses. (which doesn't apply to things like socialized health care for many, many reasons) I think you should re-read what the insurance is. E. g. Mises described that in several of his books.

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...

Ive read mises, applies free market principles to central banking. An insurer holds only a fraction of its liabilities... fiat banking in reverse. Math doesnt lie.

what? mises did? or I should? they did what they always do: changed the terms. insurance nowadays has rarely properties of what I (or anybody sane) would call insurance. if you are fundamentally against insurance on a free market, then that product is not for you.

Insurance is a fraud, like centeal banking. Im not for fraud...

Yes they do, they cant afford to pay out all their laiabilities. Do the math.

that's just dogmatic. (leaving CB part out as those things are completely orthogonal)