Can centralized cryptocurrency exchanges be insured?

In the ever-evolving world of cryptocurrency and finance, one of the pertinent questions that arise is the matter of insurance for centralized cryptocurrency exchanges. With the increasing number of transactions and the sheer volume of assets handled by these exchanges, the question begs: can they truly be insured against potential losses, hacks, or even fraudulent activities? Given the nature of cryptocurrency, where assets are often stored in digital wallets and transactions are irreversible, insurance seems like a necessary safeguard. However, the complexities involved in insuring digital assets raise several doubts, such as the valuation of cryptocurrencies, the technical challenges in investigating digital breaches, and the ever-changing regulatory landscape. Therefore, it begs the question: are centralized cryptocurrency exchanges truly insurable, and if so, how effective is this insurance in mitigating potential risks?