Insurance sector is subject to strict regulations, at least in Europe, and I think this currently makes it difficult to authorize and recognize by the market and above all gain the trust of a proper customer base.
This last feature also strongly affects the lack of development of insurances in the crypto sector according to me, considering that the mathematics underlying the principle on which insurances are based is the assumption that it is aimed at a large number of users to reduce the variance and thus allow the economic equilibrium of insurance companies.