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I would doubt that any insurer would insure a paper wallet unless they created it themselves, which Elliptic Vault seems to be doing. Otherwise the wallet might be compromised. At any rate, most people don't have the wherewithal to create a paper wallet. I could never count on my mother being able to do it. Everything technically interesting about bitcoin needs to be hidden beneath layers of abstraction for widespread adoption to be realized. I expect that over time, competition will drive the premium that Elliptic Vault charges down.