What about a fixed term insurance DAC that doesn't need a third party to adjudicate claims?
You can make your insurance claim whenever you want without needing to give a reason.
Possibly work using a Keyhotee risk profile, a separate premium that goes into the no claims bonus fund and share claim system.
1. Your Keyhotee risk profile
It determines based on available information, how risky/safe you are.
If you join a fixed term insurance product and claim early it effects your future risk profile negatively and vice versa.
(If you are risky you may not be able to join a good pool, you may have to pay a higher * no claims bonus pot premium and you may have a minimum period in which you cannot make your claim.)
2. The separate premium is a fee that is calculated on your risk profile that goes into a separate no claims bonus pot.
People who did not claim during the period get to split this pot up at the end of the period as well as any money remaining in the pool. (When you make a claim you forfeit any fees paid into this bonus pot.)
3. A share allocation system as opposed to a guaranteed $ payout.
(So that is hard to defraud the system and so that the insurance pool never runs dry.)
Example: If you would have paid in $10 000 over the life of the product then you can claim 10 000 shares whenever you want at which point you are cashed out from the product.
Lets say the monthly premium is $100 and there are a 100 people in the pool at the end of the month there will be 10 000 shares and $10 000 in the pool. If you make a claim you will be issued 9900 shares (you already have 100 from first months premium) However there are now 20 000 shares and a $10 000 pool so you claim will only net $5000.)
(You might be thinking well a $5000 return for a $100 premium sounds great, everyone will fraudently claim after the first month...
Lets say 70 people make a claim in the first month. (You never know how many people have made a claim in the specific claim period so the system can't be gamed.) Then there would be about 710 000 shares and a $10 000 pot. Meaning each pay out would only be worth $140.
Clearly the above would be a very fraudulent pool. So they may have had to pay a 50% 1st month additional premium ($50 in that example, so they would actually lose by claiming in the first month. In subsequent months the additional premium may fall to 20% or even as low as 5% depending on your risk profile.)
Using something like this you should be able to get a fair payout.
(The only disadvantage would be if you had no reputation, you would be put in a weak pool and if you were forced to make a genuine claim early, you would probably receive a low payout and a bad reputation.)
In this system, the fraudulents would be weeded out early on in the life-cycle of the product and they probably wouldn't make a big gain, maybe even a loss and the system could also be designed so that after about mid-way you would be better off not making a claim as your share of the no claims pot would make not claiming more profitable as well as earning a good reputation/risk profile. (Also after you had been in a few products you would probably be put in a very honest pool so that if you needed to make a claim early you would receive a decent payout.)
(Also the funds may go into a variety of Bitassets that would hopefully appreciate over time making not claiming and getting your hands on part of that bonus pot at the end of the term period more attractive.)