Enhanced Accessibility: DeFi insurance protocols offer global access to insurance products without the need for traditional intermediaries
Transparency: Smart contracts ensure transparent claim processing and reduce fraud by automating the verification and payout processes
Cost Efficiency: By eliminating intermediaries, DeFi insurance can lower premiums and operational costs for policyholders
Regulatory Uncertainty: The lack of clear regulations and legal frameworks for DeFi insurance can pose risks for both providers and users
Smart Contract Vulnerabilities: While they provide automation, smart contracts can be susceptible to bugs and hacks, potentially compromising the security of insurance funds