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.
For now, maybe people prefer the factor of trust voting the most because we all know that insurance companies are regulated in state laws, although they are complicated and slow, but insurance companies are quite complex and the legal rules are clear in the country so many believe it compared to DAO which does not have state laws and is decentralized so it has a considerable risk at this time, but it does not rule out the possibility if the state adopts the DAO and it is regulated in its laws clearly I think people will choose DAO, because the advantages are that it is easy and fast and also not complicated.