Quite, I've yet to see any evidence that Xapo's insurers are insuring against loss of customer BTC through theft or incompetence on behalf of Xapo.
Is there some reason you don't consider the statements they make on their website to be evidence? From
https://xapo.com/#aboutVaultYes, I would need for Meridian Insurance to put out a statement that they are insuring Xapo against loss of bitcoins under those circumstances. I'd also want to know more about Meridian Insurance.
Unfortunately people lie, so we will never be able to have 100% trust. But that would go some small way.
Meridian is basically insuring the vaults inventory whatever that may be, i.e. bitcoins. They will not specifically insure bitcoins as the price fluctuates so wildly. Xapo most likely has a coverage limit of $1mm which includes the covered perils of theft.
The problem with this is if they have an average bitcoin vauled at $600 and the price doubles overnight and then their vault gets broken into their coverage limit might not cover all bitcoins at the new price of $1,200. Everyone would have to take the $600 each and then file a lawsuit.
In order to cover this xapo would need to constantly be purchasing more insurance and passing the additional premiums on to the user, which they say is free. Not possible unless they are losing money.
On the flip side insurance only covers market value so if you store at $600, the price drops to $30 and the vault gets robbed you only get $30.
Its clear that a legal team did not draft all of this so I am a little skeptical of their ability to pay out.