After a fast reading of your WP, I think the theory behind the concept is interesting, but...

You talk a lot about servers and possible attacks against servers. So this idea of yours is more like a semi-centralized one, right? Its not fully decentralized P2P.

And BTW, when dealing with Insurance you deal with high risks, how do you intend to face that risks using a volatile cryptocurrency like Bitcoin or any other altcoin?

Wouldn't be better using pegged altcoins like Nubits for a high risk experiment like that?