DeFiLlama’s insurance category has about $97.7M of TVL, and $82.7M of that is Nexus Mutual; Sherlock, InsurAce, Bridge Mutual and Risk Harbor are basically dust. That concentration matters because smart-contract cover is underwriting correlated tail risk: one oracle, bridge, multisig or governance failure can hit half the book at once, so capital providers pull back right when premiums should be fat. Until protocols escrow self-insurance funds or give cover buyers enforceable claim paths, users are just buying audits, bug bounties and post-hack governance theater.

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