I really agree with insurance services like that, but as long as there is still no such insurance company, I really hope there is insurance for crypto services because it is certainly very helpful, and investors will not worry and calm if there is theft.
An insurance service that will give back your money when you do bad investments? Sounds impossible for me as well as abusable. One person can easily team up with someone to appear as the scammer and the victim. Both characters can also be just one person. Double money for every repetition. Even in real life, there's a lot of insurance fraud happening. What more would it be in a place like this where everyone can be anonymous and have no real life consequence if caught. You can be a well-known scammer in the crypto world and still live a normal life in real life.
Plus, people knowing that their money will be given back to them everytime they get scammed will result to mindless investments. They will try out all sorts of investments until they find something that is not a scam. I wonder how could the insurance company recover from multiple people getting scammed multiple times. I also wonder how are they going to make money from such service and where would the money they are giving out come from? It's so unrealistic but still quite believable. No wonder why a lot of ICOs in the past used this concept, but obviously failed.