Insurance is something that is hard to do in a DAC because of insurance fraud. You could use a DAC to predict the value of cures or to estimate the risk of various procedures.
The problem is that a DAC cannot depend upon any ONE provider of a good or service and a DAC must be able to reach a consensus about things without relying upon trust.
The building blocks that we have to work with are:
3) Transaction Fees
4) Multi-Sig Transactions
5) Prediction Markets
So a prediction market on the weather, the chance of a hurricane, the value of a dollar, an idea, or a political outcome are all possible. If you want insurance it must use these tools as the foundation or invent a new tool.