DeFI insurances are pretty much scams

So, two months ago, during the UST implosion, I asked the Defi Sub if anyone had managed to claim UST depeg insurance.

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I don't think an insurance model governed by shareholders vote will actually work without government type regulations, unless it's strictly enforced in the smart contract logic with oracles. I guess this is the litmus test for that.

https://np.reddit.com/r/defi/comments/uxd50q/did_any_ust_holders_manage_to_claim_depeg/

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And now from CT we have the answer

The "DeFi insurance" subindustry is fundamentally broken. It is rife with manipulation, conflicts of interest, and outright scamming. Let's look at how these issues plague services like InsurAce and Kleros, who unfairly misappropriate funds from rightful claimants. (1/20)

But a key fact is conveniently overlooked - the InsurAce team has sole control over the proposals that are uploaded and how they are worded, which undeniably influences the outcome of any given vote. They routinely abuse this power to sway votes in their chosen direction. (4/20)

In this example, InsurAce votes in a new term (adding a minimum UST amount) as an excuse to invalidate claims. This term was not included or agreed to in the original cover policy (which implied a $0 minimum, not $1). In the proposal, they put their own argument in bold. (5/20)

Unslashed's biggest insurance claim to date - a 742 ETH loss caused by the UST depeg - was referred to Kleros. Kleros is a decentralized jury system that is used by several top projects such as Uniswap. The claim was rejected several times despite it having clear merit. (9/20)

Selective scamming is scary, because it's well-concealed. The majority of small claims will go through just fine, and there will be a huge number of genuine supporters. But people do get scammed. And you never know if you might become their next target. (17/20)

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https://twitter.com/FatManTerra/status/1551511756446601216

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TL;DR: In the event of something worth filing a claim for, DeFI insurances are unlikely to pay out.