I don't think insurance and transaction reversibility are mutually exclusive. The current financial system is already insurance-based (at least in the U.S.). Y

I don't think insurance and transaction reversibility are mutually exclusive. The current financial system is already insurance-based (at least in the U.S.). You are protected from fraud in every money system you use. Transaction reversibility seems like a natural result of this, because it significantly reduces the insurance risk. Essentially, if you have insurance, transaction reversibility becomes desirable (by both parties - bank and client) because it reduces insurance costs.