Insurance and risk management is a $6 trillion market worldwide, but so far is underrepresented in the DeFi space. Decentralized insurance platforms and prediction markets enable the trading of so-called 'event risk' between participants. These platforms upend the traditional model by allowing anyone to transact with each other through smart contracts, with no intermediaries, like insurance companies (for traditional insurance) or investment banks (for derivatives) sitting in the middle. We have seen DeFi protocols like Uniswap and Aave tackle and disrupt markets like trading and lending. Will decentralized insurance see the same kind of growth? What impact will these emerging decentralized models for insurance have on legacy institutions and business models? On this episode of DeFi Decoded, Andrew and Alex dig into the insurance and prediction market space and discuss how these platforms have the power to transform risk management. They compare the decentralized DeFi insurance platforms like NexusMutual and SX Protocol to their established centralized peers.