In the proposed design, bad business decisions by one underwriter need not impact other underwriters or the DAO, because losses from underestimating the insured risk fall purely on that underwriter so long as the staked tokens cover the claim.
Source quote, verbatim
If a certain underwriter makes the mistake of underestimating the risk of the insured event, the losses will be suffered purely by the underwriter as long as the value of the staked or encumbered tokens covers the claim.
The quote above is an exact substring of the source PDF, whose sha256 is ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0. Extraction method: pdf-text-layer. Attestation record: colloquium/attestations/5a645998a643d4d6...json Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3396542-031.md | sha256sum