I am at level 15 at Lost Realm. I have fought the boss a few times and got 1 deadly strike and 3 blade shell insignia so far. I wonder if they drop better insignias at higher level.
What other insignias have you got?
If the mode is like all the others, it is safe to assume that the rewards will get slightly better when you reach key levels. However you should feel free to create a "Suggestions" thread requesting better rewards throughout the feature.
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I am on lvl 27, and mostly i see lvl 5 insignia, sometimes 4, but those insignias are fixed, and not that good. Don't get me wrong, red crystal amount is better here. But you can get better insignias from insignia pack from demon fight if i remember correctly which have Revite, Revive, Regeneration or Vb and those are helpful, but before you will get them to lvl 8 it will take some time, and resources. Not even mentioning about lvl 9->10