"The Insurance industry encompasses a very odd paradox: it wouldn’t exist without risk, yet does everything in its power to remove any risks for its policy-holders. Insurers only make money if they don’t pay out, and they won’t pay out if they can keep you from doing any of the things they’ve identified as risky."
"We’re already seeing how the drive to autonomous vehicles will be spearheaded by insurers, simply because - on current evidence - a self-driving car gets into at least an order of magnitude fewer accidents than a human-operated automobile."
Well... if any risk is truly and completely removed, there is no need to buy insurance anymore. I can't see the insurers invalidate their own business model. The trick is
a) to lower the risks to a sort of break-even point where the risk of 'something bad happening' is still high enough to be an incentive to buy insurance - but low enough in terms of 'times something bad happens' and 'size of damage' so that the odd payout doesn't cripple the insurer (also, there are insurance companies that sell insurance to insurance companies)
b) understanding the risks involved, i.e. how likely it is something will happen, how large will the damage done be, etc. Insurance companies usually have the experts they need for that, including the mathematicians. For example, companies selling life insurance have a pretty good read on life expectancies.
All these factors (plus some others, like running costs and ROI-targets, etc.) eventually determine the price the customer has to pay.
There is a market for insuring 'cyber risks' (whatever that means). Insurance companies will want to tap that market. So they will buy or rent the expertise they need. (Trivial, really.) They will not invalidate their business model (which has been working for a couple of centuries by now), they will merely adapt it.