Wintermute predicts prediction markets will replace insurance by 2026, allowing trading of specific risks, not broad policies.
Wintermute Ventures forecasts that by 2026, prediction markets will replace traditional insurance by allowing the trading of specific risks rather than broad policies. This shift will enable individuals to hedge against precise risks, such as specific wind speeds in defined locations, eliminating the need for bundled insurance. Additionally, new markets will emerge to trade previously unquantifiable factors like perception and sentiment. The use of stablecoins for programmable payments is anticipated, although the industry's settlement infrastructure remains lacking.
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