The ultimate point of the insurance market is to provide an incentive for quality. Use of components which the insurer regards as low-risk will be cheaper to in

The ultimate point of the insurance market is to provide an incentive for quality. Use of components which the insurer regards as low-risk will be cheaper to insure. What would the insurer regard as low-risk? Typically, they would use two things: 1) Past experience - have they seen this piece of software regularly exploited? 2) Formal assessment in an underwriters' lab - do relevant experts consider the software to be well-constructed? Here open-source software has a real advantage, because the underwriters can review the source code directly, or pay others to do so. They have access to any automated tests and code coverage assessments, and so might assign a lower risk score to a project with more tests. They might even assign lower risk to projects written in languages that are known to produce safer code, so with all other things being equal a Rust codebase would be cheaper to insure than a C++ one. This is entirely compatible with a system of bounties or rewards for anyone who moves the project in the direction of safety and high-quality maintenance. By concentrating the risk associated with poor software quality on the insurer, we get around the problem where many different companies use the software but are unwilling to pay for its maintenance. The insurer has a greater incentive to care than they do, and so would be more willing to pay developers. I admit that this is a back-of-a-napkin sketch, but the incentives do seem to line up correctly.