Could cryptocurrency "insurance" slow Bitcoin adoption? Does the concept of cryptocurrency "insurance" undermine the purpose of "being your own bank"? Recently I have seen more Bitcoin related companies offer some sort of insurance for Bitcoins stored in their custody and am concerned with its unintended effects.

Nobody likes the financial losses than result from hacking, but I always thought that the decentralization of control of our own money was one of the primary benefits of Bitcoin.

Education (of best security practices) and the rise of multisignature transactions and decentralized exchanges such as Bitsquare can greatly reduce the need to entrust 3rd parties with your Bitcoin.

Insurance adds cost to the system (negating part of the financial advantage Bitcoin has over Visa and Western union) and encourages trusting 3rd parties with Bitcoin safekeeping (increasing centralization of control) over learning how to safely secure it yourself (retaining full control).

Could cryptocurrency "insurance" slow Bitcoin adoption? If so how can we encourage educational efforts as a better solution. Are regulators or the free market the primary promoters of cryptocurrency insurance?
If anything, I believe the ability to buy insurance on cryptocurrency investments would speed up adoption by making it less risky to traditional investors.  Simply having insurance available doesn't mandate that everyone buy it; we'd all still have the choice whether we opt-in or not.

Traditional investments tend to have insurance policies on the insurance policiy of the insurance policy of the initial investment.  While it's a somewhat yucky business, it's also a standard practice in today's financial ecosystem.  Having these options available for bitcoin only strengthens bitcoin's value proposition and familiarity to traditional investors.