No bitcoin has always been difficult to insure because no sane company would insure something that can double or triple value overnight. The extreme finite quantity of bitcoins is what makes it difficult to insure.

i suppose i thought you meant insurance against theft, not loss of value

theft is loss of value. either way the fact remains, Bitcoin is difficult to insure due to its scarcity. If I insure 1 BTC now worth $10k then in 20 years or so (or maybe overnight) it jumps to $1mil. The insurance company hasn’t gotten enough premiums to cover the payout. Insurance works well for inflating assets, not so much for deflating.

you don't actually need to lose your coins for them to lose value... custody and value aren't the same thing.