Here is some food for thought for the ones who don't believe in the business model:

I think that the most valuable part of this project is not the initial insurance product we promise to provide, but the working model of fully distributed on-blockchain insurance company. After we have proof of concept we can apply it to multiple markets, like catastrophe bonds, flight, medical and other stuff. We have picked crypto exchanges as the first target just because this is a major problem for the most of the investors in the first round.

But I bet if we develop the prototype we'll have a queue of insurance companies lined up with offers to acquire all the intellectual property. And all investors will get pretty quick reward in case of acquisition.