Prediction market has been touted as one of the potential killer apps of crypto, but no breakout product yet. Thoughts on why?

My quick takes are 1) hard to get liquidity unless huge events like a presidential election, and 2) payout conditions and odds are hard to understand.

Couldn't you build / turn this into a kind of new form of insurance business?

This is what Nexus Mutual does. They're pretty cool.

do you mean like use prediction market to hedge certain risks? you could but you need to have prediction market with liquidity first before you can do downstream apps like that