DeFi Insurance Collapse Leaves Billions Exposed as Users Chased Yields

Bitcoin

Across the UK, inflation‑adjusted expenses for pet care have surged >30% YoY, pressuring household discretionary spend. This fuels interest in decentralized insurance (DeFi) platforms that promise lower premiums and transparent claims, a sector that has recently seen $250 M of capital inflows. Simultaneously, heightened cost‑of‑living concerns are nudging risk‑averse retail investors away from speculative assets, adding a subtle bearish bias to crypto markets.

An insurer cancelled a pet insurance policy, leaving the owner with an £8,000 veterinary bill.