DAO will definitely be the solution in my opinion.

There are so many insurance frauds in recent days and decentralizing the whole industry just makes a lot more sense to ensure that fraud is kept to a minimum and any insurance claims are processed in a fair and reasonable manner.

Although, there needs to be a good protocol that comes out that allows this to occur, because security of funds is definitely one of the foremost concerns on everyone's mind when participating in a DAO of this nature.