You are absolutely correct. I misunderstood what was being pushed. Since the critique was so typically formulaic for the crypto space ("terrible industry bla bla bla...and we're going to disrupt this terrible industry!!") I did react reflexively.

So I apologize for that. But..... This is almost more preposterous than what I was originally calling into question.

I therefore can't help but apply the similar scorn for the actual proposition regardless of how wonderful my day is going. So the idea is:

1. Smart contracts are supposed to save the world from (governments, regulatory failure, untrustworthy industries and practices, etc.) and they are never called into question among the Believers... however...

2. The evil and inept insurance companies can't do this right, of course, since they're not using smart contracts

3. So let's use blockchain-defi-based insurance against smart contract failure.

BEGS THE QUESTION: Who then will insure the insurers smart contracts?

Just when I thought that there was not another Matrushka doll inside, the crypto world pops-out another. Unmatched creativity.

Of course, this doll is not yet functional and we have no real idea whether it will perform like those evil dinosaurs that aren't "DE-FI". But wait! Smart contracts are on their way!